When it comes to investing, Frankfurt-based fund manager Universal Investment knows there is no place like home. Hence its partnership with fellow German enterprise and real assets investment firm PATRIZIA, announced earlier this year, to launch a European Long-Term Investment Fund (ELTIF) strategy.
Broadly speaking, ELTIFs aim to democratize assets such as real estate and private equity that were traditionally the preserve of institutions or ultra-high-net-worth types with lots of money to spare.
They were given the green light in Europe after the EU relaxed regulations in 2024 to lower the entry barrier for retail investors. PATRIZIA says this has already attracted “billions of euros […] with infrastructure proving to be the most popular investment asset class.”
Sound Long-Term Investment
Universal Investment says ELTIFs are a sound long-term investment that puts things like infrastructure and renewable energy at the heart of Germany’s economic strategy.
“Developments in wind power, solar energy, and battery storage are progressing rapidly, and the spectrum of investment opportunities is expanding,” it added. “Interest is growing in technologies, such as hydrogen, energy storage systems, and data centres, which often go hand in hand with renewable energy.”
EUR$500bn? Bring it on!
Like Universal Investment and PATRIZIA, German equities fund Oddo BHF is keen to keep the home fires burning. Given the hefty load of fuel the Merz government just chucked on to these in the form of state bonds, this is hardly surprising.
Oddo hailed the national EUR500 billion infrastructure program as something of a savior for the German economy. By the looks of things, Universal Investment and PATRIZIA are keen to get a slice of this action, and they aren’t the only ones feeling the money love in Germany.
Around three-quarters of fund managers canvassed by Bank of America earlier this year said they expected “German fiscal stimulus to fuel gains” as the DAX in Frankfurt posted record highs in April 2025.
Super Money Manager
Universal Investment prides itself on its track record as a “Super ManCo” – essentially a management company that looks after other people’s money at scale.
It claims to have EUR1.38 trillion on its books – including EUR366 billion worth of retail products and EUR714 billion of institutional – as at June 2025, so it’s probably fair to say this isn’t an idle boast.
Universal Investments has long been aware of the enormous potential of its domestic markets.
“With more than [EUR] 3.4 trillion in assets, the German institutional market far surpasses that of many of its European counterparts, and is increasingly garnering strong investor interest,” said the company’s head of sales Markus Kuntz in 2023. “Meanwhile, the German retail market represents the largest in Europe, with total assets under management of nearly EUR1 trillion.”
Alternative is the New Mainstream
It’s these rich pickings that the company hopes to capitalize on through its ELTIF venture with PATRIZIA. The joint fund is squarely aimed at digitalisation, urbanisation, and energy transition, areas targeted by the German government’s bond-backed investment program.
“Infrastructure presents a compelling opportunity for long-term portfolios, offering both stability and diversification,” said Graham Matthews of PATRIZIA earlier this year when it announced the project.
“We are proud to support PATRIZIA in making alternative investments more accessible,” added Kuntz. “We see great potential in bringing PATRIZIA Infrastructure Invest to a wider investor base.”
DAX Delights
The DAX has surged 16% in the year to July, outperforming its counterparts in the US. Perhaps unsurprisingly given the turbulent times Europe is living in, defence stocks have been a key component.
Bank of America has praised the German move to get rid of its debt brake, going so far as to predict potential growth of 2% in 2027. Likewise Goldman Sachs has revised its earlier gloomy forecasts upwards to predict moderate (0.2%) growth this year.
If that sounds paltry, it’s still a far cry from what experts were touting for Germany at the beginning of the year.
Before the half-trillion-euro shot in the arm, Universal Investment reported at the end of 2024 that wealth managers it surveyed were predicting “recession or stagnation” for Germany and other countries in Europe.
Germany Looking Golden, says Goldman
Goldman Sachs singled out Germany’s “fiscal breakthrough” in May as a major driver of the improved economic outlook for European assets – in spite of US President Donald Trump’s “America first” tariff policy.
“Although US tariffs are a near-term headwind for Europe and beyond, the prospect of increased fiscal firepower has led to renewed optimism on the Euro area’s medium-to-long term economic growth prospects,” it said. “The spending shift also opens the potential for new investment opportunities across sectors.”
Universal Investment: EU Going Strong
Universal Investment seems to be just as optimistic. Taken together, progressive EU regulation and the stimulus of German bond money could both be drivers for substantial growth both within the central European powerhouse and across the region.
“Due to the new regulation, we are seeing growth in the availability of ELTIFs with different maturities, liquidity levels, and investment approaches,” said Universal Investment’s managing director Markus Banwart. “This shows that the European Union’s reform of the ELTIF concept is already delivering tangible benefits.”
#capitalmarkets #ESG #infrastructure #Germany #EU
Author: Damien Black
The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organizations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.
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