DWS, a European asset manager, has achieved the first close of its ESG Infrastructure Debt Strategy (EIDS), raising €323 million ($339 million). The strategy has received support from institutional investors across Europe, the Middle East, Africa (EMEA), and Asia-Pacific (APAC), reflecting the firm’s commitment to expanding its private infrastructure and alternative credit business. The initiative also aligns with DWS’s broader goal of delivering investment solutions to support Europe’s economic transformation.
EIDS focuses on senior infrastructure debt investments in continental Europe, targeting sustainable infrastructure projects. This milestone highlights DWS’s growing presence in the European infrastructure debt market, with a particular emphasis on green and social infrastructure investments, as well as sustainability-linked loans.
The strategy represents DWS’s second senior European infrastructure debt series, following the success of its first vintage, which deployed over €850 million ($893 million). Continuing the pan-European approach, EIDS prioritises mid-market private debt financing and directly negotiated transactions. The strategy aims to raise between €500 million ($525 million) and €750 million ($788 million), with the €323 million ($339 million) raised to date comprising €120 million ($126 million) in a master vehicle and €200 million ($210 million) in a side vehicle focused on energy transition debt investments.
EIDS is designed to deliver a target gross return of 5.5-6.5% annually, with a distribution target of 5.0-6.0%. The fund will primarily invest in senior secured debt for projects and corporate borrowers in sustainability-focused sectors, including renewable energy, energy efficiency, utilities, digital infrastructure, clean transportation, and circular economy initiatives. At least 50% of the fund’s investments will align with the EU Taxonomy, and the strategy adheres to reporting requirements under Article 8 of the EU Sustainable Finance Disclosure Regulation (SFDR).
Sundeep Vyas, Head of Infrastructure Debt Europe at DWS said, “Infrastructure debt as an asset class continues to draw strong investor interest due to good risk-adjusted returns, attractive illiquidity premiums, and a robust pipeline of investment opportunities.”
Benjamin Schmitt, Director of Infrastructure Debt at DWS added, “The second iteration of our European senior debt strategy enables institutional investors to access a diversified portfolio of debt investments offering stable yield income and downside protection while supporting the development of resilient and sustainable infrastructure in Europe. We thank our clients for their support with the first close and look forward to scaling the strategy to its target size.”
