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Fengate raises C$600m across two funds

Toronto-based Fengate Capital has closed two infrastructure funds worth a combined C$600m, attracting commitments from Canadian pension funds. The firm has already invested some $300m in Canada’s infrastructure.

Toronto’s Fengate Capital Management, the alternative investment arm of Fengate Corporation, has closed on a pair of infrastructure funds – the Fengate Greenfield Infrastructure Fund and the Fengate Infrastructure Fund I.

The fund closings represent a combined capital raising of more than C$600 million (€457 million; $600 million) in equity, which will be invested in the Canadian infrastructure sector, according to a statement from Fengate. In fact, the firm says it has already deployed some $300 million across several Canadian projects.

“Our success in raising institutional capital is a testament to the confidence investors have in our ability to execute on our unique infrastructure [strategy] while achieving stable long-term returns,” said Lou Serafini Jr., president and chief executive of Fengate.

Fengate Capital, which has $1.2 billion in assets under management, including the most recent fundraising, says its “infrastructure fund clients consist of Canadian pension funds seeking to match long-term pension liabilities with long-term cash yielding investments”. The firm says it primarily invests in public-private partnerships across social infrastructure, transport and energy.

Last August, Fengate Capital – together with UK developer Carillion, Canadian contractor EllisDon Corporation – reached financial close on a C$2 billion PPP to build a new hospital in Ontario – financing 90 percent of the project with a mixture of long-term bonds and short-term bank debt. It is also in the race to build and operate a 50-kilometre eastern extension of Ontario's 407 highway.