IFM Investors raised $6.5 billion in infrastructure equity and debt globally between 1 July 2016 and 30 September 2017, the Australian fund manager disclosed today.
Of that total, $2.15 billion came from 29 European and Middle Eastern investors, including 20 new clients from seven countries, such as Denmark, Finland, the Netherlands, Switzerland and the UK. Most of that capital came from pensions ($920 million from public pensions and $855 million from private schemes) with $370 million provided by insurers and $10 million from one foundation. Investors include the likes of Nordea Life & Pensions ($90 million), Barnet Council Pension Fund ($62.5 million) and Stichting Pensioenfonds voor Fysiotherapeuten ($27 million), a Dutch pension for physiotherapists.
The lion’s share of the $2.15 billion was raised for IFM’s global equity strategy ($1.7 billion) – which includes global and Australia-focused open-ended funds – with the remainder ($430 million) for infrastructure debt through separate mandates.
IFM executive director Annabel Wiscarson said regulation and the firm’s preference for open-ended structures contributed to the success of the fundraising. “Regulation such as Solvency II is also having an effect, making infrastructure a more attractive investment proposition for insurers,” she said, adding: “Our investors find our open-ended infrastructure equity structure particularly appealing.”
The Australian fund manager, which ranked fourth in this year’s edition of the Infrastructure Investor 50 ranking, was set-up 22 years ago by a group of not-for-profit pension funds seeking to create their own cost-efficient manager. It now manages more than $37 billion across equity and debt.