Australian fund manager AMP Capital has raised more than $1 billion in new commitments for its global infrastructure platform since its October 2014 inception, as the platform nears its $2 billion final close.
The platform was formed by converting AMP Capital’s Strategic Infrastructure Trust of Europe from an open-ended to a closed-ended European fund and launching the Global Infrastructure Fund (GIF).
The GIF received commitments of nearly $400 million cumulatively for its second and third closes, according to a statement. The fund raised over $540 million for its first close last March.
The investor commitments, combined with the platform’s existing portfolio of European equity assets, means the platform is more than three quarters towards meeting its target.
Anthony Fasso, AMP Capital’s chief executive, said the platform's new clients have come from Japan, the Middle East, Denmark, Finland, Spain, Switzerland, Canada and the US.
“Investors have come to understand the many benefits that infrastructure provides to a portfolio, such as low volatility, high yield, GDP and inflation linkage, and low correlation with equities, and we continue to be encouraged by the increasing demand for the platform,” said Boe Pahari, managing partner of AMP Capital’s GIF.
“Our recent success in fundraising and deal activity, notably the Angel Trains, ESVAGT and Adven transactions in 2015, reinforces the team’s enthusiasm and focus to source compelling investment opportunities and generate further value for our global infrastructure investors,” he added.
The platform’s investment mandate is to focus on mature, brownfield assets that hold monopolies or long-term contracted revenues in sectors offering the best relative value, such as transport, energy, communication and utilities.
“Looking to 2016, we believe deal flow will remain highest in the largest and deepest infrastructure markets of Western Europe and North America, although we are seeing more and more investors looking to Eastern Europe for value due to the competitiveness of deal flow in other regions and subsequent pricing pressure,” Pahari said in AMP Capital’s outlook statement for real assets in 2016.
Based in Sydney, AMP Capital currently managers A$160 billion ($115 billion; €105 billion) in funds as at 31 December 2015, with infrastructure allocation of more than A$10 billion.