InstarAGF holds $390m second close for infra fund

The Essential Infrastructure Fund is C$228m short of its C$750m target and is expected to reach final close early next year.

Canadian investment firm InstarAGF held second close for its inaugural infrastructure fund and has raised 70 percent of its C$750 million ($561 million; €508 million) target.

The Essential Infrastructure Fund has collected C$522 million so far – C$150 million more than at first close in March. The fund is C$228 million short of its target, and InstarAGF said it expects to hold final close in early 2017.

The fund is targeting energy, utilities, civil and social infrastructure assets and has already deployed C$210 million, investing in a passenger terminal at Billy Bishop Airport in Toronto, a 30MW wind project in British Columbia and acquiring a stake in a midstream company in Alberta. InstarAGF said it seeks investments with downside protection: assets that have long-term contracts, concession agreements or fall under regulatory regimes.

“InstarAGF’s middle-market, North American focus is distinctive and positions us to deliver stable income and long-term value to our investors as we help communities and partners to renew, build and modernise their critical infrastructure,” InstarAG chief executive Gregory Smith said.

Infrastructure Investor previously reported that employees at the company have made investments in the fund in a show of strength that is meant to exhibit “strong alignment with investors”, according to InstarAGF.

When InstarAGF held first close for its fund in March, it also announced the addition of Rick Byers, a former executive vice president at Borealis Infrastructure, to its advisory board. InstarAGF was launched in 2014 as a joint venture with Instar Group and AGF Management Limited, one of Canada’s largest independent investment management firms.