Seizing the Sub-IG infrastructure debt Opportunity

As discussed in our previous paper, The coming of age of european mid market infrastructure, Europe’s infrastructure investment landscape is being reshaped by powerful structural forces. The energy transition, sovereignty and security of supply considerations, digitalization, and the modernization of ageing assets are collectively driving a sustained increase in infrastructure capital needs across the continent. As these investment requirements accelerate, traditional sources of capital are increasingly insufficient to support growth ambitions particularly for smaller platforms, transition assets, and expansion stage projects. 

Within the lower mid-market, this dynamic has brought renewed attention to Sub Investment Grade (Sub-IG) infrastructure debt as a distinct and increasingly relevant financing solution. We believe that Sub IG infrastructure debt sits at the intersection of resilience and return potential: it finances essential infrastructure assets while offering investors enhanced relative value in the current market environment. However, care needs to be taken when accessing this part of the market. Projects are often more bespoke, structures more complex, and outcomes more dependent on disciplined underwriting. Investors must therefore be able to assess and  price risk appropriately to ensure that returns adequately compensate for complexity.

Building on this conviction, LBP AM European Private Markets (EPM) is launching a strategy¹ dedicated to Sub-IG infrastructure debt. This initiative draws on more than 13 years of experience, during which EPM’s Infrastructure Debt platform has raised over €4 billion, invested in more than 75 projects across the European Union, and currently manages eight infrastructure debt funds².

1. Each investment involves risks, including but not limited to the risk of capital loss and illiquidity.
2. Source: LBP AM, as of 31/03/2026.