AMP Capital closes debt fund on €400m

Thirty institutional investors from Australia, China, Japan, the US, Germany and the UK helped wrap up the subordinated debt fund. AMP has already invested over 42% of the vehicle.

After roughly a year-and-a-half on the fundraising trail, Australia's AMP Capital (AMP) has closed its subordinated debt fund on €400 million, backed by 30 investors from across the globe.

AMP started fundraising in late 2010, managing to attract pension and endowment funds from Australia, China, Japan, the US, Germany and the UK to close the fund. The fund had reached a fourth close earlier this year on €326 million, after securing the backing of its first US investor, which was not named.

“Infrastructure debt investments appeal to investors because of the secured position in the capital structure and the defensive and visible earnings streams of businesses lent to,” Andrew Jones, global head of infrastructure debt, explained in a statement.

AMP's subordinated debt fund has already invested €169 million, or just over 42 percent, of its €400 million war chest. A recent investment included the acquisition of £15 million (€19 million; $23 million) of the recently converted BAA Toggle Facility “at an attractive discount to face value,” AMP said in a statement. The fund has also helped arrange another £150 million subordinated debt facility for BAA Airport, with the fund and other clients advised by AMP holding £62.5 million of that amount.

In total, AMP's subordinated debt fund counts five deals and is targeting a portfolio of “investments in the subordinated debt of 10 to 15 companies headquartered in OECD countries, in the essential services of water, gas, electricity, transport and hospitals,” AMP explained.

AMP Capital says it had more than A$123 billion (€99.2 billion; $131.6 billion) under management at the end of last year and has made more than 80 infrastructure equity and debt investments globally over the last 20 years. Its European investments have included Thames Water, Angel Trains and Compania Logistica de Hidrocarburos.