6 Westbourne Capital
Westbourne Capital prides itself on being a pioneer of infrastructure debt. Established a decade ago as a specialist investment manager focused on investing in infrastructure debt globally on behalf of institutional clients, the Melbourne-based firm has raised $2.2 billion more than it had for the previous ranking, but that has not been enough to move it higher than the sixth place it achieved last year.
The second Australia-headquartered firm on our list, it has been doing a lot of business through Westbourne Infrastructure Debt Program 3, which has held a first close and is sized at $2.9 billion. It is currently investing in transport, social infrastructure and telecoms in North America, Asia-Pacific and Western Europe. The $225 million Westbourne Infrastructure Debt Opportunities Fund, which closed in 2017, also invests in transport, social infrastructure and telecoms in Asia.
The firm offers debt in support of acquisitions, refinancing and the construction or expansion of greenfield or brownfield projects. It is primarily focused on debt investment in infrastructure assets in OECD countries.
7 Rivage Investment
Paris-headquartered Rivage Investment has climbed a place up the ranking, with its capital raised some $485 million more than last time. Last year, it held a final close for its €1 billion REDI 3 fund just seven months after launching it, hitting its hard-cap well ahead of anticipation. That fund is now investing across Europe and targets senior secured, investment-grade infrastructure debt with a spread of 200-250 basis points above the swap curve.
REDI 3 focuses on mid-size transactions in brownfield assets where Rivage can play a role in structuring the financing. The firm also invests through the €400 million REDI HR vehicle, which closed in 2018, the €500 million RHIF, which closed in 2016, and the €628 million REDI 1, which closed in 2015. The €696 million REDI 2, which closed in 2017, is fully invested.
Rivage’s infrastructure debt funds generally focus on euro-denominated credit in France, Germany, Italy, the Netherlands, Spain and the UK. As of September 2019, the firm had more than €4 billion of commitments through 12 infrastructure debt funds, nine of which were segregated and three of which were pooled.
8 IFM Investors
The first new name on the list is IFM Investors, another Melbourne-based manager. The specialist credit and infrastructure debt manager has a 20-year track record and manages A$49 billion ($33.2 billion; €30.1 billion) of debt investments globally. IFM burst into the top 10 after quadrupling its capital raised in the five years to August 2019 when compared with the amount raised in the five years to August 2018.
The firm launched its $635.6 million IFM US Infrastructure Debt Fund (Open-ended) in 2018, targeting opportunities in energy and other sectors in North America. It is its first open-end infrastructure debt fund and aims to replicate the success of IFM’s $28.7 billion equity fund, which is one of the world’s longest-running.
The debt fund attracted a $100 million commitment from Kentucky Retirement Systems, with fellow US public pension Plymouth County Retirement System and Australian peer CareSuper also committing.
IFM restructured its Australian infrastructure investment team last year, making redundant the positions of three directors in anticipation of a quieter domestic market.
9 Edmond de Rothschild Asset Management
Edmond de Rothschild Asset Management ranks ninth in our list for the second time, holding steady in its position despite having raised more than $1 billion extra. The London-based manager raised just over $3 billion between 1 January 2014 and 31 August 2019, compared with $1.9 billion in the period captured by last year’s Debt 10.
The firm’s name has a considerable pedigree in infrastructure, going back to the 19th century, and Edmond de Rothschild Asset Management remains active in advisory services and financing for major infrastructure projects.
Edmond de Rothschild Asset Management is currently investing through the €595million Benjamin de Rothschild Infrastructure Debt Generation (BRIDGE) fund; the €147 million (target €800 million) Benjamin de Rothschild Infrastructure Debt Generation II (BRIDGE II); and the €250 million Benjamin de Rothschild Infrastructure Debt Generation IV (BRIDGE IV) – Higher Yield fund.
It also launched the €500 million Benjamin de Rothschild Infrastructure Debt Generation IV (BRIDGE IV) – Senior Energy Transition fund in June 2018.
Having only narrowly missed out on a place in the top 10 last year, Schroders has strongly boosted its figure for capital raised from $1.4 billion to a little over $2.5 billion. This means that every firm in this year’s top 10 has raised at least $2.5 billion, 12 months after
$1.65 billion would have made the cut.
Schroders is the third London-based firm to make the top 10. Its infrastructure division, led by Charles Dupont, head of infrastructure finance, was launched in September 2015 and has the following active infrastructure debt funds: the €465 million Schroder Euro IG Infra Debt I; the €135 million Schroder Euro IG Infra Debt II; the €349 million Junior Loans Infrastructure Europe; the €73 million Schroder UK Infrastructure Debt (its first such UK fund, with a target of €300 million); the €283 million Schroder Euro IG Infra Debt III; and the €650 million Schroder Euro IG Infra Debt Fund IV.
The Schroder UK Infrastructure Debt fund was launched in 2017 and targets junior loans in the transport, energy, environmental, social infrastructure and telecoms sectors in the UK.