Prime Capital has reached the final close of its sustainable infrastructure debt fund at €305 million, marking a milestone for the Frankfurt-based asset manager's infrastructure debt platform.

The Prime Sustainable Infrastructure Debt Fund, or PSIDEF, provides financing to small and medium-sized enterprise infrastructure developers and asset owners across Continental Europe and the Nordics. The vehicle is classified as an Article 9 fund under the Sustainable Finance Disclosure Regulation, targeting investments that support the decarbonisation of infrastructure and promote energy efficiency.

"We are very pleased to have successfully reached the final closing of PSIDEF, which marks an important milestone for our infrastructure debt platform," said Andreas Kalusche, chief executive of Prime Capital. "At the same time, we continue to raise capital for our asset-based strategies, which are designed to provide investors with differentiated sources of return and meaningful diversification across sectors, geographies and asset classes."

The fund attracted backing from eight institutional investors from Europe and East Asia, including the European Investment Fund — the venture capital and guarantee arm of the European Investment Bank Group. Other LPs include insurance companies, pension funds, family offices, and foundations.

Since inception, PSIDEF has financed approximately 70 assets across 10 transactions, spanning battery energy storage systems, energy efficiency projects, and social infrastructure. The most recent transaction involved ElectroFleet, a German Energy-as-a-Service provider focused on decentralised energy solutions for large German offtakers.

The final close comes as European infrastructure debt continues to attract allocator interest, driven by the continent's energy transition financing needs and the relatively attractive risk-adjusted returns available in the mid-market segment. Infrastructure debt has emerged as a preferred allocation for insurers and pension funds seeking stable, long-duration cashflows with downside protection, and Prime Capital's Article 9 classification positions the fund to capture flows from investors with explicit sustainability mandates.