Swiss private bank to launch European infra fund

09 April 2019 - 12:00 am UTC

The asset management arm of Swiss private bank Reichmuth & Co is preparing to launch fundraising for its inaugural pan-European infrastructure fund, sources said.

Lucerne-headquartered firm Reichmuth & Co Investment Management is set to launch Reichmuth Infrastructure CIP II (CIP II) with seed capital of CHF 100m later this month, as it looks to raise at least CHF 350m (EUR 311m) for the fund.

The manager, which is expected to hold a first close before year-end, is expected to set the fund’s hard cap in the region of CHF 500m.

Reichmuth & Co Investment Management is coordinating the fundraise internally and is seeking to broaden its investor base outside its domestic market.

The new fund is an expansion of the strategy it debuted in 2014 with its CHF 250m Switzerland-focused infrastructure fund – Reichmuth Infrastructure Switzerland CIP (CIP) – as it will invest both in Switzerland and in other geographies across Europe.

The new fund will have a 12-year term subject to an optional two-year extension and a further optional one-year extension.
 
The manager will aim to make 10-15 investments in the region of CHF 15-50m per investment across the transportation, waste and energy sectors. It will also look to offer its LPs co-investment alongside the fund.

Within the transportation sector the manager targets investments in the rolling stock, rail, aviation, and shipping.
 
The firm is a long-time investor in the freight sector which it has invested in both from CIP (see table) and its dedicated CHF 400m freight wagon investment company, Inroll AG.

In the waste and energy sectors, the fund targets investments in energy distribution networks, waste management, electromobility, energy efficiency, storage and generation.

The manager looks to avoid auction processes by originating transactions on a bilateral basis through its network in Switzerland and Europe.

The firm has been investing in infrastructure since 2011 and has over CHF 700m in infrastructure assets under management. It is led by Dr. Stefan Hasenböhler alongside a team of nine infrastructure professionals.

Reichmuth Infrastructure Switzerland CIP Portfolio as of 31 Dec 2018
Asset CIP Stake Description
InRoll AG 10.70% InRoll AG is a Swiss public limited company that owns freight cars.
These wagons are maintained exclusively by Wascosa AG and rented out to major corporations and state railways under long-term lease contracts.
Serfhar AG 96.20% Serfahr AG has an exclusive cooperation agreement with Swiss railway company Sersa Rhomberg Group (SRG).
SRG leases all Serfahr AG vehicles under long-term contracts to major corporations or state railways.
LokRoll Holding AG 75.00% LokRoll AG leases 18 new Siemens Vectron MS locomotives to SBB Cargo International for cross-border freight transport on the Germany-Austria-Switzerland-Italy rail corridor under a 15-year contract.
EBL Fernwärme AG  19.60% Elektra Baselland (EBL) is a Swiss district heating company.
aventron AG  6.10% Diversified Swiss renewable energy company with a total installed capacity of 350MW. 
Kraftwerk Morteratsch AG 90% Responsible for the renovation and operation of the Morteratsch hydro power plant.
Helvetia Environnement Group SA 20.20% Helvetia Environnement Group SA (HEG) operates in the areas of waste collection, separation, and recycling for local authorities, industrial firms, SMEs, and private households. 
EBL Wind Invest AG  18.70% EBL Wind Invest AG’s (EWI) has a portfolio of eight onshore wind farms with an installed capacity of 79 MW. It is actively investing in further projects.