AMP debt fund lures US pension for fourth close

The AMP Capital Infrastructure Debt Fund has announced a fourth close on €326m, just two months after reaching third close. Having announced its first UK pension investor at the end of last year, it has now hooked its first US pension.

Australian fund manager AMP Capital has announced a €37 million allocation from its first US pension fund and an endowment for its debt fund, the AMP Capital Infrastructure Debt Fund. The fund has now reached fourth close on €326 million just two months after announcing a third close on €284 million. It has a final target of €500 million.

The identity of the US pension has not been revealed. Last December, the fund’s first UK pension investor was revealed to be the East Riding of Yorkshire Council.

In all, the fund has now attracted 21 institutional investors from Japan, the US, the UK, Australia and Hong Kong. The fund, which invests in the subordinated debt of “essential” infrastructure assets, reached first close in December 2010. It was backed by a cornerstone commitment of an undisclosed size from China Life Insurance, the world’s largest insurance company, alongside funds managed by AMP Capital. 

“Despite challenging markets, we continue to see success in our fundraising efforts and are pursuing a pipeline of attractive investment opportunities as a key provider of subordinated debt to the global infrastructure sector,” said Andrew Jones, AMP Capital global head of infrastructure debt, in a statement. “Further, our ability to invest a significant tranche of commitments quickly accelerates cash flow to clients.”

On the latter point made by Jones, it has also been revealed that the fund has made its fourth investment through the commitment of a £50 million (€59.7 million; $79.2 million) subordinated debt facility for UK airports operator BAA.

The fund targets OECD-based assets “with high barriers to entry, a regulated environment and strong industry positions, providing investors with the potential for attractive risk adjusted returns in the form of high cash yields over the long term”.

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.