Aberdeen launches fifth infra fund

The vehicle, the first since the £322bn asset manager finalised its acquisition of SWIP’s infrastructure unit last May, has already raised $168m.

Aberdeen Asset Management (Aberdeen) has launched its fifth infrastructure fund, the firm announced today.

The vehicle, which will follow a strategy in line with that of its predecessors, has already garnered $168 million from a range of Asian investors, according to a source close to the matter.

Aberdeen did not respond to questions on the fundraise’s timeframe and target before press time.

The news comes a few months after Aberdeen completed the acquisition of Scottish Widows Investment Partnership’s (SWIP) infrastructure fund management business from Lloyds Banking Group, which was the latest step of a £550 million (€690 million; $925 million) transaction announced last November.

The deal saw SWIP’s infrastructure unit, whose 24-strong team is headed by Gershon Cohen and manages £1.3 billion, join Aberdeen’s suite of alternative assets management businesses. The firm then announced its intention to keep the unit’s management team and strategy intact while providing it with an international platform and capabilities for growth.

The unit’s latest deals include its 30 percent participation in Scots Road Partnership, the consortium behind a £415 million motorway upgrade in Central Scotland, as part of a project first announced in August 2013.

“The interest in this fund is an insight into the increasing demand from institutional investors who are attracted by the potential for a stable income over a sustained period. It is also a reflection of the growing allocation to alternative investments and strategies from an ever increasing number of investors,” commented Andrew McCaffery, global head of alternatives at Aberdeen.

The vehicle will focus on projects underpinned by long-term contracts in Europe, Australia and the US, with a bias towards greenfield investments and inflation-linked cash flows. Targeted sectors will include healthcare, education, social and government accommodation, roads, bridges, rail, rolling stock and waste management.