AXA IM Real Assets Raises €1 Billion Through EIS Funding Platform for Infrastructure Debt

SEO Meta Description: AXA IM Real Assets successfully raises over €1 billion through an EIS funding platform, enhancing opportunities in private infrastructure funds.

Introduction

In the dynamic world of investments, private infrastructure funds have become a cornerstone for institutional investors seeking reliable and long-term returns. AXA Investment Managers – Real Assets recently set a significant milestone by raising over €1 billion through their Enterprise Investment Scheme (EIS) funding platform for their second infrastructure debt fund, European Infrastructure Senior (Floating) 2 (EIS 2). This achievement highlights the growing trust and demand in the market for private infrastructure funds.

AXA IM Real Assets: A Leader in Infrastructure Investment

AXA Investment Managers – Real Assets (“AXA IM – Real Assets”) is a global powerhouse in real assets investment, managing a diverse portfolio that includes real estate, infrastructure, private debt, structured finance, and hedge funds. With €146 billion in assets under management as of March 2020, AXA IM Alts demonstrates its significant influence and expertise in the sector.

Proven Success and Track Record

The successful closure of EIS 2, exceeding €1.05 billion, underscores AXA IM – Real Assets’ effective strategy in managing private infrastructure funds. The fund attracted a mix of repeat investors from its predecessor, European Infrastructure Senior 1 (EIS 1), and new institutional investors across Europe and Asia. This robust fundraising effort showcases the platform’s proven strategy and the high demand for infrastructure debt assets.

Strategic Approach of EIS 2

Diversification for Stability

EIS 2 aims to deliver defensive and stable income by investing in a diversified portfolio of core infrastructure financings across key European markets. The fund predominantly targets senior secured floating rate debt investments, balancing security with flexibility in returns.

Geographic and Sectoral Balance

Since December 2018, EIS 2 has invested in six transactions spanning digital infrastructure, renewable energy, and rail transportation sectors in France, Spain, and Germany. This geographic and sectoral diversification minimizes risks and capitalizes on growth in high-demand areas, reinforcing the stability of private infrastructure funds.

Institutional Confidence in Private Infrastructure Funds

The successful fundraising of EIS 2 reflects a broader trend of increasing institutional confidence in private infrastructure funds. Investors are drawn to these funds for their ability to provide consistent, long-term returns, especially in a low-interest-rate environment where traditional investments may offer diminished yields.

Sustainable and ESG-Focused Investments

AXA IM – Real Assets integrates Environmental, Social, and Governance (ESG) principles into its infrastructure debt portfolio. This focus on sustainability not only aligns with global investment trends but also enhances the long-term value and resilience of investments, making private infrastructure funds even more attractive to conscious investors.

The Role of EIS Funding Platforms

EIS funding platforms play a pivotal role in democratizing access to private infrastructure funds. By leveraging tax-efficient investment schemes, these platforms make it easier for a broader range of investors to participate in high-growth sectors traditionally dominated by large institutions.

Advantages of EIS Platforms

• Tax Reliefs: Investors benefit from significant tax incentives, making it financially advantageous to commit capital to private infrastructure funds.
• Accessibility: EIS platforms streamline the investment process, allowing both seasoned and novice investors to engage with complex financial instruments.
• Community and Support: Platforms like Oriel IPO provide educational resources and community support, enhancing investor confidence and facilitating informed decision-making.

Future Outlook for Private Infrastructure Funds

The fundraising success of EIS 2 positions AXA IM – Real Assets to continue expanding its infrastructure debt platform. With a total portfolio now exceeding €7.3 billion across more than 80 transactions, the firm is well-poised to capitalize on emerging opportunities in the private infrastructure funds sector.

Expanding Investment Capacity

EIS 2 will continue to co-invest alongside existing mandates and third-party capital, increasing its ability to deploy substantial commitments and participate in significant transactions. This collaborative approach ensures that AXA IM – Real Assets remains at the forefront of infrastructure debt investment.

Conclusion

AXA IM Real Assets’ achievement in raising over €1 billion through an EIS funding platform underscores the viability and attractiveness of private infrastructure funds in today’s investment landscape. As demand for stable, long-term returns continues to grow, platforms like AXA IM – Real Assets and Oriel IPO are essential in providing investors with accessible and reliable investment opportunities.

Interested in exploring new investment opportunities? Visit Oriel IPO to connect with entrepreneurs and discover a range of SEIS and EIS funding options tailored to your investment needs.