MEAG, the asset manager of Munich Re Group, has launched its third infrastructure debt fund with a EUR800 million (US$868 million) target.

The recently established fund concentrates on senior secured infrastructure debt financings within Europe, with a primary focus on sectors like Transport, Social, Communication, Energy, and clean tech. It places a strong emphasis on integrating environmental and social attributes as integral components of its investment strategy. This fund also offers the potential for added returns due to factors such as illiquidity, complexity, and formidable market-entry obstacles. It presents an appealing prospect when compared to analogous fixed-income investment options. The predictability of cash flows is enhanced as capital calls and repayments are generally foreseen in advance. Given the current interest rates, the fund allows for capturing higher yields for the long term.