Aberdeen Standard Investment is raising a $250 million infrastructure fund that is collecting institutional capital to invest in public-private partnership opportunities in South America, a source confirmed to Infrastructure Investor.
The fundraise is part of the UK-based manager’s new strategy targeting social infrastructure investments in South America, starting in Colombia, Peru and Chile, the source said. The Andean Social Infrastructure Fund I reached a first close on $98 million and is seeking commitments from a small group of institutional investors, according to the source. The fund has a $300 million hard-cap, and all commitments are from the US so far.
Expected returns for the fund are in the mid-to-high teens, the source said, for investments mostly in greenfield availability-based roads, schools, hospitals and water treatment plants. Aberdeen will consider some brownfield deals during the fund’s two- to three-year deployment period.
The firm, which declined to comment, manages over £670 billion ($878 billion; €757 billion) in assets after a £3.8 billion merger in March between Aberdeen Asset Management and Standard Life. The firm’s infrastructure business specialises in social infrastructure PPPs and has raised funds invested in Europe, the US and Australia.