Foundation Credit has completed the final close of Foundation Infrastructure Debt Fund II with approximately $540 million in total capital commitments, exceeding the fund’s original target.
The fund is part of Foundation Credit’s Foundation Infrastructure Opportunities platform and is focused on debt investments tied to essential infrastructure projects across the United States.
FIO Fund II attracted commitments from a broad group of institutional investors, including pension funds, insurance companies, endowments, foundations, asset managers, and registered investment advisors. The investor base included both existing and new limited partners.
Foundation Credit plans to use the fund to pursue opportunities in the fragmented U.S. local infrastructure debt market, with an emphasis on middle-market transactions. The strategy is designed to provide flexible, patient capital to infrastructure projects and borrowers that may have limited access to traditional financing sources.
The fund’s sector focus spans transportation, water and wastewater infrastructure, sustainable and environmental projects, social infrastructure, and smart infrastructure.
Foundation Credit sees an opportunity in the U.S. municipal credit and infrastructure debt markets because of their scale, fragmentation, and recurring financing inefficiencies. The firm focuses on sourcing and structuring credit opportunities that arise when infrastructure borrowers require customized capital solutions.
Founded in 2012, Foundation Credit is an alternative asset manager dedicated to municipal credit and infrastructure debt. The firm manages capital on behalf of institutional investors including pensions, insurance companies, endowments, foundations, and family offices.
The closing of FIO Fund II expands Foundation Credit’s capacity to finance essential infrastructure projects while increasing its exposure to a market the firm believes remains undercapitalized relative to communities’ and infrastructure operators’ long-term financing needs.
The firm’s infrastructure strategy aims to finance projects across sectors while offering investors exposure to debt backed by essential assets and services.
KEY QUOTES:
“We are grateful for the support and confidence of our investing partners in FIO Fund II. As a solutions provider for essential infrastructure projects across the United States, we are excited about the robust pipeline of opportunities in our middle market focused infrastructure debt strategy.”
Steve Pinkos, President Of Foundation Credit
