AMP launches $225m fundraise, eyes controlling stakes

The Australian firm has restructured its flagship Antipodean vehicle in an effort to expand its investment mandate.

Sydney-headquartered AMP Capital is aiming to raise A$300 million ($225 million; €204 million) from institutional investors in Australia and New Zealand as it seeks to grow its newly restructured flagship infrastructure fund. 

The Infrastructure Equity Fund, launched in 1995, has been renamed the AMP Capital Diversified Infrastructure Trust (ADIT). The vehicle has also been converted to a staple trust, removing a constraint that prevented it from acquiring controlling stakes in operating assets. The firm said the move would broaden the trust’s investment universe and help attract new equity commitments. 

The firm expects deal flow to be strong in Australia for the remainder of 2016, particularly in the mid-market. “More opportunities mean an increased level of transaction activity within the fund, which will be enhanced by the new stapled structure that enables ADIT to acquire controlling stakes of target assets,” said Michael Cummings, AMP Capital’s head of Australia and New Zealand infrastructure equity funds, in a statement. 

“With this in mind, we have launched a capital raising of up to A$300 million in anticipation of the stronger deal flow for the next six to 12 months and would like to increase ADIT’s exposure to sectors such as transport, ports, and student housing in particular.”

ADIT holds a diversified portfolio of mature infrastructure assets in Australia and New Zealand, which include Melbourne Airport, Powerco New Zealand, Sydney University Village and the M5 Interlink Roads. 

AMP Capital said the trust has performed strongly over one, three and five years, with returns of 20.3 percent, 17.8 percent and 15.7 percent respectively, as of June 2016. “Performance has improved after the portfolio was rebalanced towards core assets,” the firm noted.