The new Luxembourg-regulated fund will have the same investment philosophy as the previous generation and is aiming to raise between EUR 400m and 800m.
Seeking out fresh opportunities
A second BRIDGE platform fund (Benjamin de Rothschild Infrastructure Debt Generation) is being launched. It will be managed by the same team of 11 experts based in London. The fund seeks to broaden the range, capturing fresh opportunities, whether at the project or operational stage, which have been identified by the investment team and are available on the market. The fund is designed for all French and European institutions investors. Both BRIDGE platform funds will be able to join forces for co-investments that meet investment mandates.
The second BRIDGE fund will capitalize also on the strong pipeline of transactions available to its team across Europe, including in the UK where a few landmark transactions have already been closed in 2015 by the first fund. The BRIDGE platform will maintain a specific focus on addressing UK investment opportunities and investor interest.
The first BRIDGE fund was set up in August 2014 for French institutions like insurance companies, provident societies or mutuals. It has already made a number of investments and more are to come. It totals EUR 595m and has invested 71% of its commitments. In 18 months, it has invested EUR 420m, going well beyond its initial target, and now has a diversified portfolio of assets in conventional and renewable energy, road rail and air transport and social infrastructure (healthcare and Private Finance Initiative or PFI deals) in France, Germany, Austria, Belgium and the UK.
Infrastructure debt is whetting investor appetites
With rates set to stay low for some time and amid ongoing banking disintermediation which has prompted the arrival of new players offering alternative funding solutions, investing in infrastructure debt creates opportunities for long term investors looking for yield. These investments provide institutions with a diversification tool.
Infrastructure debt benefits from robust fundamentals as assets have good credit ratings, low volatility, stable cash flow and long maturities. It also boasts highly visible yields which reflect a certain illiquidity premium. Most infrastructure assets are monopolies and provide essential services to their markets. They also benefit from political back-up and regulatory incentives.
Infrastructure funding is part of the Rothschild history. The family made a significant contribution to the funding of major projects like the Suez Canal or Europe's railway network during the 19th century industrial revolution. Building on this tradition, the Edmond de Rothschild group has moved into advising on infrastructure financing. The BRIDGE platform's investment team results from this development.
Legal form: Société en Commandite par Action (SCA)
Marketing: First closing on July 31 2016. However, depending on subscriptions received, the first closing may be brought forward or put back. Subsequent closings will occur in the 6 months following the first.
Investment period: 4 years following the first closing. This period may be extended (twice) by one year at the discretion of the General Partner's executive board and with the consent of a majority of Investor Representative Committee members.
Maximum management charges: 0.55% of invested amounts.
Subscription commission (not accruing to the fund) and redemption fee: N/A
"Edmond de Rothschild Asset Management (EdRAM)" is the commercial name of the asset management entities (including branches and subsidiaries) of the Edmond de Rothschild Group. It also refers to the Asset Management division of the Edmond de Rothschild Group."
Investments in BRIDGE entail exposure to risks from holding debt securities, most notably: counterparty risk, risk of non-reimbursement at maturity, deferred or early reimbursement, credit risk, liquidity risk, interest rate risk, exchange rate risk and concentration risk.
This is a non-binding document which is for information purposes only. It shall not be construed as a solicitation to buy or sell, or an offer of, financial securities to its addressees or the general public.
BRIDGE's investment vehicles are reserved exclusively for professional investors or their equivalent and might come with restrictions for certain persons and in certain countries. We advise any interested persons first to consult their usual advisors to ensure that they are legally entitled to subscribe to the above mentioned products and/or services. The funds herein may not be offered, sold or delivered directly or indirectly to the United States or for the account of, or in the interest of, any person living in the United States. The funds are offered outside the United States in compliance with the exemption from registration under the S regulation of the 1933 Act. In any case, any investment in Bridge can only be made based on the documents and information that comply with prevailing regulations and which the Edmond de Rothschild Group will provide to investors free of charge before any investment is made.
The data, comments and analysis in this document reflect the opinion of Edmond de Rothschild Asset Management (France) and its affiliates with respect to the markets, their trends, regulation and tax issues, on the basis of its own expertise, economic analysis and information currently known to it. However, they shall not under any circumstances be construed as comprising any sort of undertaking or guarantee whatsoever on the part of Edmond de Rothschild Asset Management (France).
All potential investors must take prior measures and specialist advice in order to analyse the risks and establish his or her own opinion independent of Edmond de Rothschild Asset Management (France) in order to determine the relevance of such an investment to his or her own financial situation.
The investment company for the Bridge Fonds Commun de Titrisation is France Titrisation. Edmond de Rothschild Asset Management (UK) is the investment advisor and Edmond de Rothschild Asset Management (France) is in charge of marketing.
EDMOND DE ROTHSCHILD ASSET MANAGEMENT (FRANCE)
47, rue du Faubourg Saint-Honoré
75401 Paris Cedex 08
Société anonyme governed by an executive board and a supervisory board with capital of 11.033.769 euros
AMF Registration number GP 04000015
332.652.536 R.C.S. Paris