Investment & Fund Management

Prime Capital AG has successfully accelerated the growth of its Prime Sustainable Infrastructure Debt Fund (PSIDEF) to €130 million, following a €30 million commitment from the European Investment Fund (EIF). This fund specifically targets the European small- and mid-market segment, focusing on financing independent infrastructure developers and asset owners. The PSIDEF aims to address the significant financing gap faced by independent companies in this sector, which often struggle to secure funding due to the high costs associated with infrastructure projects and their limited access to traditional debt providers.

The tailored solution provided by PSIDEF is particularly relevant for the battery energy storage systems (BESS) sector, which has substantial financing needs and a limited number of active lenders. By focusing on BESS projects, which are quicker to develop and require less space compared to traditional renewable energy assets, PSIDEF positions itself as a strategic partner for these developers. The fund's strategy emphasizes assets with robust cash flow generation, allowing for high quarterly cash yield distributions and a target return of 9.5% to 10.5%.

As a result of this focused approach, PSIDEF has not only increased its fund size but has also attracted a diverse range of investors, including insurance companies, pension funds, and family offices, who are drawn to the high cash yield and the fund's commitment to sustainable investment. The EIF's support is seen as a significant milestone, reinforcing the fund's dual objectives of securing access to finance for European SMEs and backing infrastructure projects that contribute to climate action and sustainability. The fund's recent upgrade to an Article 9 classification under the EU Sustainable Finance Disclosure Regulation further underscores its commitment to environmental, social, and governance principles, enhancing its appeal to investors seeking responsible investment opportunities.