DWS today announced the launch of its new institutional ESG Infrastructure Debt Fund (EIDF), a truly innovative fund in the alternatives and private debt space. It will focus on European sustainability themed infrastructure sectors which contribute towards making society and economies more sustainable.
ESG will play a key factor in all strategic allocations for the fund, targeting sectors including: renewable energy, digital, energy efficiency / utilities, clean mobility / transportation and social infrastructure. It will make 10-15 private infrastructure debt investments (loans and notes) with circa 70% across senior debt, and circa 30% in junior debt with a positive ESG contribution essential for the investment decision making process. With the aim to deliver sustainable returns, it will target net yield income of 3.5% per annum (4.0% gross) and receive favourable Solvency II treatment.
DWS has received the highest rating from independent ESG ratings and research agency Vigeo Eiris on the alignment of EIDF with the definitions of sustainability activities by internationally recognized standards.
“EIDF was launched in response to clear investor demand for infrastructure, for debt, and for sustainable products. We believe insurance companies, pension funds and investors looking for a source of duration, diversification and return premium in a low-yielding, fixed income environment will be particularly interested in this fund,” said Sundeep Vyas, Head of Infrastructure Debt, Europe at DWS.
“Covid-19 has accelerated a number of key trends, particularly the focus on sustainability. With assets in the ESG space at the forefront of our society and supporting megatrends of the future, we are extremely proud to be a first mover in this space. Investors have the opportunity to use their capital to drive concrete societal change,” concluded Hamish Mackenzie, Head of Infrastructure at DWS.
DWS established its Infrastructure Debt platform in 2014 and operates across London and New York, providing wide coverage of the global private infrastructure debt market. Since inception, the team has raised €3.1 billion of capital, and has deployed €2.5 billion into private infrastructure debt investments globally (as of December 2020) with 110 years of collective infrastructure experience.
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About DWS - Infrastructure
DWS has been investing in infrastructure assets since 1992. The global platform – which provides client solutions covering private equity infrastructure, debt and separate account mandates – gives investors access to such economic sectors as transportation, utilities, telecommunications, and other service sectors critical to the basic functioning of local and global economies. As part of the Alternatives platform, the direct infrastructure business holds over €11 billion in assets under management (as at March 31, 2021) and more than 40 infrastructure investment professionals. With 25+ years of direct infrastructure experience, DWS employs a disciplined investment approach and aims to deliver superior long-term risk adjusted returns, preservation of capital and diversification to its investors, which include governments, corporations, insurance companies, endowments, and retirement plans worldwide.
About DWS Group
DWS Group (DWS) is one of the world's leading asset managers with EUR 820bn of assets under management (as of 31 March 2021). Building on more than 60 years of experience, it has a reputation for excellence in Germany, Europe, the Americas and Asia. DWS is recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines.
We offer individuals and institutions access to our strong investment capabilities across all major asset classes and solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management – as well as our deep environmental, social and governance focus – complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground-knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, which guides our investment approach strategically.
DWS wants to innovate and shape the future of investing: with approximately 3,500 employees in offices all over the world, we are local while being one global team. We are investors – entrusted to build the best foundation for our clients’ future.
This document is intended for discussion purposes only and does not create any legally binding obligations on the part of DWS Group GmbH & Co. KGaA and/or its affiliates (“DWS”). Without limitation, this document does not constitute investment advice or a recommendation or an offer or solicitation and is not the basis for any contract to purchase or sell any security or other instrument, or for DWS to enter into or arrange any type of transaction as a consequence of any information contained herein.
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