AMP launches closed-ended fund, targets $2bn

The Australian manager’s Global Infrastructure Fund, which will inherit $750m of European assets from a formerly open-ended vehicle, has enlisted support from London-headquartered Pantheon.

AMP Capital (AMP) today announced the launch of its Global Infrastructure Fund, a closed-ended, equity-only infrastructure vehicle with a target size of $2 billion.

The Sydney-based firm created the platform by converting its Strategic Infrastructure Trust of Europe (SITE) from an open-ended to a closed-ended European structure, whose remit will now be broadened to cover global markets. Existing SITE investors and new limited partners (LPs) in the Global Infrastructure Fund will now have the choice between keeping to a European exposure or expanding their horizon to the wider OECD.

SITE’s existing assets, which comprise $750 million worth of infrastructure investments, will serve as a seed portfolio for the Global Infrastructure Fund. The new vehicle is aiming to raise a further $1.25 billion of new commitments.

“The platform we have created, which offers new investors immediate access to highly attractive and diversified seed assets, represents an opportunity that we believe is unmatched in the market,” said Boe Pahari, AMP’s head of infrastructure for Europe and the Americas and managing partner of the Global Infrastructure Fund.

The need for a new vehicle became apparent as AMP’s existing and prospective global investors expressed demand for a closed-ended version of the capabilities offered through SITE, a source close to the firm told Infrastructure Investor. The Global Infrastructure Fund has a five-year investment period and a lifespan of 10 years, with an optional two-year extension.

AMP today also confirmed that London-headquartered Pantheon had made a “significant” commitment to the vehicle, although both firms declined to comment further on the size and structure of the investment. It is understood, however, that the fund of funds manager will have exposure to both existing and new assets in Europe and will be looking to co-invest alongside the Global Infrastructure Fund.

Assets the vehicle will inherit from SITE include large stakes in Newcastle Airport, Angel Trains, Alpha Trains, Thames Water, CLH and the Greater Gabbard Offshore Transmission Owner (OFTO) project.