Exclusive: IFM raising US debt fund

The Australian manager, which has traditionally pursued infra debt through separate accounts, is targeting an initial $400m first close on the vehicle.

Melbourne-based IFM Investors (IFM) has launched a US-focused pooled debt fund, a first for the manager, who has traditionally raised money for infrastructure debt investments through global separate accounts, Infrastructure Investor has learnt.

The fund is eyeing an initial $400 million first close by the early summer, targeting returns of between 400 and 600 basis points over LIBOR. The US has long been a focus of IFM’s infrastructure debt business, but the new vehicle is intended to capture capital flows from smaller to medium-sized institutional investors not large enough to take on separate accounts with IFM.

IFM manages some $14 billion of debt investments including, but not limited to, infrastructure debt, according to its website.

The Australian manager, who is unique in that it is owned by 29 pension funds, has over $20 billion in infrastructure equity investments. Since mid-2014, its investments in Vienna Airport, Freeport LNG, Mexican toll road operator Conmex and the US’ Indiana Toll Road have seen it deploy close to $5 billion in equity.

IFM’s current limited partner pool includes 180 institutional investors, with only 70 being Australian.