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(Bloomberg) -- UBS Group AG’s asset management unit raised 570 million euros ($637 million) for its first European infrastructure debt fund as it seeks to take advantage of a shortage of finance as banks shrink their balance sheets.

UBS raised money from 17 investors, including pension funds and insurers in Europe and Japan, according to Tommaso Albanese, head of infrastructure debt at UBS in London. The Archmore Infrastructure Debt Platform has already advanced 220 million euros for deals in Spain, Belgium, Scandinavia and France.

The manager is not considering any U.K. deals at present but will continue to examine investment opportunities following the vote to leave the European Union on a case-by-case basis, he said.

The “uncertainty and volatility created by Brexit does not currently offer a suitable risk return profile for a euro-based long-term debt investor such as Archmore,” Albanese said.

Asset managers are creating funds for higher-yielding investments including infrastructure and real estate debt to help meet increasing liabilities at pension funds and insurers because of low interest rates. The UBS fund will finance infrastructure projects in industries including renewable energy and transportation, Albanese said.

The fund’s deal so far have been at an average gross yield of more than 3.75 percent, the manager said. That compares with about zero percent for a German 10-year bond.

(Corrects values of loans advanced in second paragraph.)

To contact the reporter on this story: Sharon Smyth in London at ssmyth2@bloomberg.net. To contact the editors responsible for this story: Neil Callanan at ncallanan@bloomberg.net, Michael Shanahan

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