NN Investment Partners has launched the European Sustainable Infrastructure Debt Fund, looking to tap into the growing investor appetite for this burgeoning asset class.

As Fundeye has already identified, infrastructure investment is set to double in five years according to a survey so asset managers are keen to get in on this trend.

The firm said Infrastructure debt is widely seen by many investors as being particularly attractive as it offers compelling risk-adjusted returns and at the same time contributes to providing essential public assets and services that typically provide significant social, environmental and economic benefits.

NN Investment Partners is no stranger to this asset class, it made its first infrastructure debt investments in 1992. This new fund aims to build a diversified portfolio of investment grade quality infrastructure debt across Europe in five core sectors, including social infrastructure, transportation, energy, utilities and digital infrastructure.

Despite the illiquid nature of infrastructure investing, its low correlation to economic cycles has made it attractive to long-term investors. It also helps those seeking to diversify their portfolios, match their liabilities and earn attractive returns.

Alistair Perkins, head of infrastructure debt at NN Investment Partners, comments: “We are very excited to launch this new Fund, as it allows us to combine our in-depth knowledge and experience of infrastructure debt with the growing demand from our clients to invest in the real economy and contribute to the UN Sustainable Development Goals (SDGs).”

The fund has a target annual gross return of 3%-4% and a duration of 12 to 15 years. The firm has around €238 billion in assets under management for both retail and institutional clients.