Prime Capital grows sustainable infrastructure debt fund to €130m with EIF’s €30m commitment under InvestEU

Prime Capital grows sustainable infrastructure debt fund to €130m with EIF’s €30m commitment under InvestEU

(IN BRIEF) Prime Capital AG has expanded its Prime Sustainable Infrastructure Debt Fund (PSIDEF) to €130 million after securing a new €30 million commitment from the European Investment Fund under the InvestEU programme. The Article 9 fund focuses on financing Europe’s small- and mid-market infrastructure developers, providing quarterly cash yield distributions with a target return of 9.5% to 10.5%. A key focus is battery energy storage systems, seen as vital for grid stability and renewable integration, where demand for financing remains high. With investors including insurers, pension funds, and family offices, the fund continues to attract interest thanks to its blend of diversification, yield, and sustainability. Prime Capital expects further deployment into BESS projects in the near term, with final closing scheduled for Q1 2026.

(PRESS RELEASE) LUXEMBOURG/FRANKFURT, 20-Aug-2025 — /EuropaWire/ — Prime Capital AG has announced that its Prime Sustainable Infrastructure Debt Fund (PSIDEF) has grown to €130 million following a new €30 million investment from the European Investment Fund (EIF) under the InvestEU programme. The EIF’s renewed commitment underscores strong institutional backing for PSIDEF, which targets financing for Europe’s small- and mid-market infrastructure developers and asset owners.

PSIDEF is classified as an Article 9 fund under the EU Sustainable Finance Disclosure Regulation (SFDR), reflecting its strong ESG focus. It aims to deliver a gross target return of 9.5% to 10.5%, supported by high quarterly cash yield distributions. The fund’s strategy centers on addressing the capital needs of independent infrastructure developers—particularly SMEs that often face challenges accessing debt markets despite their technical expertise and local presence.

In the current market environment, Europe’s infrastructure debt sector continues to expand rapidly, with transaction values increasing by around 20% year-on-year to $410 billion in 2024, making up roughly a third of the global market. With further acceleration expected due to government investment packages, infrastructure debt offers investors stable, inflation-linked, and cash-yielding returns. PSIDEF is designed to seize this opportunity by supporting projects across Continental Europe and the Nordics.

One of the key allocation priorities for the fund is large-scale battery energy storage systems (BESS), which are seen as critical to stabilising electricity grids as renewable energy penetration grows. BESS assets typically have shorter development timelines, lower environmental impact, and strong revenue potential, creating attractive conditions for investors. By deploying capital into this segment, PSIDEF is positioning itself as a growth partner for independent developers, helping them transition into long-term asset ownership.

Andreas Kalusche, CEO of Prime Capital, said: “We are very pleased to welcome six investors into the fund, including insurers, pension funds, endowments, and family offices. They value the high cash yield and diversification benefits we provide. The EIF’s renewed support is an important milestone, reflecting the strength of our strategy.”

Marjut Falkstedt, Chief Executive Officer of the EIF, added: “Our commitment to Prime Capital aligns with our top priorities—supporting European SMEs’ access to finance and backing infrastructure projects that contribute to climate action and a greener EU economy. We are confident in the fund’s risk-return profile and its capacity to deliver both impact and financial performance.”

Stefan Futschik, Head of Prime Capital’s Private Debt team, highlighted the ESG-driven strategy: “We have upgraded PSIDEF to Article 9, demonstrating our commitment to sustainability without compromising returns. Our portfolio shows that it is possible to combine attractive investment opportunities with tangible contributions to the EU’s climate goals.”

With its third closing complete, PSIDEF continues fundraising with a final close targeted for Q1 2026. The fund is supported by the European Union under the InvestEU programme.

Background

Founded in 2006, Prime Capital AG is an independent asset management firm and financial services provider, owned by management as well as current and former senior employees. The company takes a holistic, cross-divisional approach and specialises in Alternative Investments, in particular in Absolute Return, Infrastructure with a focus on Energy Infrastructure, and Private Debt. Furthermore, the company provides Access Solutions for access to Alternative Investments through securitisations and fund structures. Prime Capital currently employs about 125 people in Frankfurt and Luxembourg and is regulated by BaFin and CSSF.

As of June 2025, Prime Capital has approximately EUR 3.8bn Assets under Management as well as EUR 8.7bn Assets under Administration.

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SOURCE: European Investment Fund