AMP nears debut closing for second debt fund

Fund II is targeting a final close of $1bn.

AMP Capital, the Australian fund manager, is getting ready to hold a first close for its second, $1 billion subordinated debt fund, Infrastructure Investor can exclusively reveal. 

“We are very close to having our first debt fund 75 percent invested and once we hit that threshold, we will hold a first close on our second fund,” Gerry Jennings, principal for infrastructure debt, told Infrastructure Investor

Jennings would not, however, be drawn into revealing the potential size of that first close beyond stating that, “given the first fund’s track record, [Fund II’s] first close should be well supported”. Fund I, which closed on €400 million last June, raised money from 30 pensions and endowments from China, Japan, the US, Germany, Australia and the UK. 

In December 2012, AMP Capital announced the launch of the AMP Capital Infrastructure Debt Fund II (IDF II) “following significant growth in demand for infrastructure investment in developed markets from investors in Asia, Europe and North America,” AMP Capital said at the time. 

Jennings confirmed this surge in interest from institutional investors and noted an important change for this second round of fundraising: “The educational piece has largely gone out of the fundraising process. We don’t talk to LPs [limited partners] anymore about which bucket their allocations will come from.” 

The head of debt explained Fund II will have a similar remit to Fund I in that it will be a closed-end, 10-year fund focusing on subordinated debt and targeting brownfields in the water, gas, electricity, and transportation sectors across OECD countries. 

AMP Capital is no stranger to the infrastructure debt space. Collectively, its eight-strong infrastructure debt team – located in London, New York and Sydney – has invested over $1.7 billion in 37 infrastructure assets since 2001.