German alternative investment manager Yielco Investments has raised 鈧�155m from German insurers and pension funds for its first infrastructure fund of funds.
The company, established in 2011, is seeking to raise 鈧�300m for Yielco Infrastructure I and said it had reached the halfway point 鈥渆arlier than planned鈥�.
To start generating income returns for its investors, the fund of funds will start buying stakes in existing infrastructure funds this year.
鈥淲e also expect to enter and close a transaction in the secondaries market soon to further dampen the j-curve,鈥� said Matthias Unser, Yielco Investments managing director.
The fund of funds will invest globally, mainly in small and mid-market opportunities, 鈥渨ith less competitive pressure on valuations鈥�, he said.
Yielco is focusing on energy, transport, utilities and social infrastructure. Telecom and renewable energy investments will play a minor role.
In total, the company now manages around 鈧�370m in infrastructure investments, having been awarded a 鈥淕erman insurance company鈥檚 managed account mandate and a pension fund鈥檚 advisory mandate鈥� in the spring, according to Unser.
Yielco also 鈥渟upports two German pension funds in allocating and investing a combined 鈧�600m in private debt globally鈥�, he said.
