AMP Capital is about halfway to reaching the $2 billion target it has set for its third infrastructure debt fund, according to several sources with knowledge of the matter.
That places it within striking distance of the amount it collected for the whole of its second debt fund, which closed in 2014 on $1.1 billion. The firm launched Fund III less than a year later, in November 2015.
Infrastructure Investor understands that AMP Capital is currently deploying the remainder of Fund II, and that it has already started investing Fund III. The vehicle is expected to reach its final close in Q3.
AMP Capital declined to comment.
Like its predecessors, Fund III targets high-yield subordinated debt, capable of generating returns of about 10 percent. It has a global remit, with a focus on Western Europe, North America, and to a lesser extent, Australasia.
Fund II counts about 50 LPs, including the East Riding of Yorkshire County Council Pension Fund and China Life Insurance Company, according to Infrastructure Investor data. It is understood that Fund III will look to gather a similar number of investors. AMP Capital currently count about 100 LPs across its funds.
Last September, AMP Capital expanded its US infrastructure debt team, hiring Adam Heath as vice-president. The appointment came after the firm added James Redmond as an associate, also in New York.