MEAG, the asset management arm of Munich Re and ERGO, has secured a €1 billion mandate from a Dutch pension fund to invest in senior secured infrastructure debt across Europe. The deal underscores growing institutional demand for long-term, stable returns from essential assets.
The mandate, awarded on 27 May, will be deployed through MEAG’s newly launched Infrastructure Debt Fund III, a Luxembourg-based SCSp SICAV-RAIF. The fund will target investments in transport, energy, social infrastructure, and communications, with an ESG-aligned strategy that adheres to Article 8 of the EU Sustainable Finance Disclosure Regulation.
“This fund is designed to deliver attractive risk-adjusted returns while supporting infrastructure that is critical to Europe’s future,” said Sebastian Schroff, MEAG’s global head of institutional asset management. “We see strong interest from institutional clients for stable income backed by essential assets.”
While the identity of the Dutch pension fund has not been disclosed, the move reflects a broader shift among institutional investors towards infrastructure debt. Dutch schemes such as PMT and PME allocated €2.5 billion to the asset class in 2021, seeking diversification and ESG alignment.
The Infrastructure Debt Fund III is aiming for a final close of €600 million to €800 million. Up to 20% of its portfolio may be allocated to non-investment-grade assets, although the average credit quality is expected to be in the BBB/BBB range.
MEAG’s prior infrastructure debt funds have raised a total of nearly €1.7 billion. ERGO, MEAG’s parent alongside Munich Re, is a major German insurance group with significant exposure to European and international financial markets.