Bruno Alves
The US firm is exiting infra debt just as its five-member team, led by Gerry Jennings, was preparing to raise two debt funds targeting a combined $1.5bn.
The semi-open-ended vehicle, targeting UK defined benefit schemes, is aiming for a 5% net annual yield through investments in infrastructure debt, renewable energy, real estate debt and other alternative investments.
The bank debuted its senior debt credit enhancement facility to help mitigate traffic risk for the brownfield road and clinch €400m of long-term bank and bond debt.
The Sequoia Economic Infrastructure Fund, which focuses primarily on subordinated debt, was originally aiming for £150m.
Chris Wrenn and Philippe Benaroya co-headed the European team together with Giles Lengaigne, who remains. Eric Savi leads the $4.4bn global infra debt business.
Investors’ fixed income allocations dwarf their alternatives buckets and infra debt is now firmly in their sights as fixed income diversification becomes a long-term trend, writes Infrastructure Investor editor Bruno Alves
Juri Jenkner moved internally from his role as co-head of the firm’s private debt business to support the strong growth of its infra programme.
The Australian manager, which has traditionally pursued infra debt through separate accounts, is targeting an initial $400m first close on the vehicle.
The pioneering vehicle, backed by local pensions and insurers, is already eyeing five projects from the country’s $25bn 4G roads programme.
The subordinated loan is backed by two UK solar portfolios held by Lightsource Renewable Energy Holdings.