Versorgungsanstalt des Bundes und der Länder (VBL), one of Germany’s largest pension funds, has appointed Allianz Global Investors as the manager for its EUR 500m infrastructure debt fund, according to sources familiar with the situation.

Karlsruhe-headquartered VBL, which had over EUR 65bn assets under management as of December 2024 and insures more than five million people, launched a request for proposal for a fund manager last year, sources said.

After shortlisting around 20 companies, VBL narrowed down its search to about four bidders before awarding the mandate for its EUR 500m infrastructure debt fund to Allianz, according to the sources.

Other fund managers involved in the process at an earlier stage include AXA, Infranity, Macquarie, MEAG and BlackRock, which all regularly compete for infrastructure fund mandates, sources noted.

The exact strategy of the fund and its investment targets remain unclear, as VBL has not officially announced its launch.

VBL and Allianz declined to comment.

AXA, Infranity, Macquarie, MEAG and BlackRock did not respond to requests for comments.

VBL, Germany’s largest supplementary pension provider for public sector employees, announced plans earlier this year to increase its private equity and debt investments, without specifically highlighting infrastructure.

The pension fund invests across various asset classes, including equities, real estate and fixed income, with the latter accounting for the lion’s share of its portfolio.

VBL selected Nordea Asset Management last year to manage its EUR 1.2bn sustainable equity fund.

Allianz manages several debt funds of its own, including the EUR 750m Allianz Global Infrastructure and Energy Transition Debt Fund, which hit first close at EUR 220m in 2023, and the EUR 1bn Allianz Infrastructure Credit Opportunities Fund II.

Allianz’s appointment to manage VBL’s infrastructure debt fund comes amidst Germany’s big push into infrastructure led by the country’s new government.

Germany is set to implement a EUR 500bn infrastructure fund, aimed at financing projects beyond budgetary constraints and allocating EUR 100bn to federal states and municipalities, and EUR 400bn to the federal government.

The fund has a provision of EUR 100bn to be spent on energy transition and climate protection measures, including investments in energy efficient buildings, EV charging infrastructure and hydrogen projects.