Sydney-based AMP Capital has initiated efforts to raise its third debt infrastructure fund in five years with a target of $2 billion.
The launch comes less than a year after AMP closed Infrastructure Debt Fund II (IDF II), the vehicle’s predecessor, on $1.1 billion plus $250 million in additional co-investment pledges. IDF III will invest in sectors including utilities, energy and transport in OECD countries.
“Investors have told us they are looking for investments with high yield and stable returns, both characteristics of infrastructure debt and what our IDF I and II funds have delivered to their investors,” said Andrew Jones, AMP Capital’s head of infrastructure debt, in a statement.
IDF I, the first of the series, is now fully deployed. It successor, which has a four-year investment period, has already closed 11 deals in Europe, America and Australia.
Last month, AMP Capital invested in Invenergy, a clean energy company based in Chicago, via a $200 million loan provided by IDF II. It is also lending $75 million in subordinated debt to UK solar assets held by developer Lightsource Renewable Energy Holdings.
AMP Capital has invested more than $2.75 billion in 53 infrastructure debt assets since 2001. Currently, its global infrastructure debt team has 10 investment professionals based in London, New York and Sydney.
AMP Capital is also busy raising its Global Infrastructure Fund (GIF), which it created last year through the conversion of its Strategic Infrastructure Trust of Europe from an open-ended to a closed-ended European structure.
Last March, the firm announced having collected more than $540 million for the vehicle, bringing it past halfway towards its $2bn target when combined with GIF’s $750 million portfolio of existing assets.