UBS is set to launch a new infrastructure fund of funds targeted towards institutional investors.
The UBS AFA Global Infrastructure Multi-Manager Fund will invest in funds that focus on mature PPP projects and utilities. The fund will not invest in greenfield projects. It is estimated the fund will ultimately have interests in around 100 underlying projects through its investments.
Geographically the fund will concentrate on investments in Europe and the US, and will not invest in listed infrastructure assets.
First close of the fund has been earmarked to take place by the end of the second quarter, with an initial target fund size of $200 million. Going forward it is understood the fund is targeting a final close of over CHF 1.5 billion (€1 billion; $1.4 billion), the amount raised by sister fund UBS Investment Foundation Infrastructure.
The new fund will come under the umbrella of UBS’s Alternative Funds Advisory (AFA) division, and will be managed by a team in Zurich led by Ulrich Keller, chief investment officer of the AFA group.
Earlier this month UBS, in conjunction with Middle Eastern investment firm Abu Dhabi Investment Company, raised $250 million for the first close of the ADIC-UBS Infrastructure Fund I, a fund focusing on the MENA region.