AMP Capital secures US$4.1 billion for infrastructure debt strategy
AMP Capital has managed to secure US$4.1 billion for its Capital Infrastructure Debt Fund III (IDF III), which was ahead of its target of US$2 billion, by raising US$2.5 billion for the mezzanine debt strategy, and by securing an additional US$800 million in co-investment rights and further US$800 million from other investors.
The company said the fund attracted an interest from 125 investors from 12 countries with a particular strong interest from institutional investors in Japan, Korea, Canada and Germany.
According to AMP Capital’s global head of infrastructure debt, Andrew Jones, Korea and Canada were the new success markets which saw US$300 million being raised in Korea and the Canadian large pension plans investing in the strategy for the first time.
Also, Japanese investors who were early adopters of infrastructure debt as an investment strategy, contributed strongly to the fund.
“Infrastructure mezzanine debt appeals to investors looking for an attractive yield with capital stability and it is growing in prominence among pension plans and insurance companies in particular,” Jones said.
“Our focus is now on finding great assets on behalf of our IDF III investors.
“We have already secured four high quality assets for the fund and are seeing further opportunities across a range of sectors including renewables, telecommunications and energy distribution in OECD countries,” he said.
IDF III, which has an investment period of four years, is the third infrastructure debt fund launched by AMP Capital in six years.
AMP Capital’s first infrastructure debt fund was closed to new investment in 2012 after raising US$500 million globally.
Its second fund, IDF II, raised US$1.1 billion, with US$250 million in additional co-investment pledges.
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