Luxembourg transport logistics fund for institutional investors with unique selling points

Solvium established Solvium Infrastructure Invest S.C.S. as an umbrella fund in Luxembourg in 2024. The first sub-fund, TRANSPORT INFRASTRUCTURE EUROPE FUND I, has already received marketing approval for Germany and has a target volume of up to 600 million euros. The AIFM is Hauck & Aufhaeuser Fund Services S.A. The cash flow-oriented equity fund plans to make ongoing distributions of 5.00% to 7.00% per annum.

The equity fund, which has an investment phase of eight years, is expected to generate annual returns of 7.80% to 9.30%. In accordance with Article 8 of the Disclosure Regulation, the fund invests indirectly in logistics equipment, in particular European freight wagons and locomotives operating on standard gauge tracks. The fund's target groups are initially insurance companies, pension schemes and pension funds in Germany and Switzerland. Other European countries are to follow. A short ramp-up/down phase, an attractive risk/return profile, and a clear investment phase of around 8 years are among the fund's special features.

The TRANSPORT INFRASTRUCTURE EUROPE FUND I invests in the growth market of transport logistics with a focus on Central European rail freight transport. In doing so, the fund supports SDGs 12 and 13, as it promotes lower-emission transport options and serves the circular economy. According to TREMOD (Transport Emission Model V 6.51) of the German Federal Environment Agency, rail freight transport produces approximately 80% less greenhouse gas emissions than road transport by truck. The fund qualifies under Section 2 (1) No. 13b AnlV and as a qualified infrastructure investment under SOLVENCY II.

The fund advisory for TRANSPORT INFRASTRUCTURE EUROPE FUND I is provided by the globally active logistics asset manager Solvium Holding AG from Hamburg. The Hamburg-based company can point to a 100% forecast fulfillment rate in its nearly 15-year history.

“Initial discussions with insurance companies and pension funds confirmed our assumption that our new fund will be a suitable addition to many portfolios. In the infrastructure sector in particular, TRANSPORT INFRASTRUCTURE EUROPE FUND I offers unique selling points, including its relatively short term, no use of debt capital, and attractive ongoing payouts practically from the outset,” said Solvium’s board member Andre Wreth, adding, ”we also see the quality of the fund and its management confirmed by the Telos rating of AA+."