AMP Capital has reached final close on the AMP Capital Infrastructure Debt Fund III (IDF III), raising USD2.5 billion for the mezzanine debt strategy, an additional USD800 million in co-investment rights and securing a further USD800 million from investors who want access to its deal capabilities.
IDF III, the third infrastructure debt fund launched by AMP Capital in six years, had a target of USD2 billion. The fundraise is believed to be one of the largest in the world for an infrastructure debt strategy.
More than 125 investors from 12 countries have invested in IDF III, with strong interest from institutional investors in Japan, Korea, Canada and Germany.
The fundraise was also strongly supported by UK local government pension schemes (LGPS), with four LPGS investors, including Northamptonshire, East Riding and Cambridgeshire, committing more than USD100 million to IDF III.
AMP Capital Global Head of Infrastructure Debt, Andrew Jones (pictured), says: “I’m thrilled at the level of confidence in the infrastructure debt asset class and our team as evidenced by our successful fundraise for Infrastructure Debt Fund III.
“We have exceeded our expectations, attracting interest beyond the fund’s hard cap of USD2.5 billion and securing an additional USD1.6 billion in co-investment and other commitments for infrastructure debt deals brokered by AMP Capital. These commitments will be called on after the fund makes its allocation to each investment.
“We had success in new markets such as Korea, where we raised more than USD300 million, and Canada where some of the country’s large pension plans invested in our strategy for the first time. Japanese investors, early adopters of infrastructure debt as an investment strategy, were also strong supporters of the fund.
“Infrastructure mezzanine debt appeals to investors looking for an attractive yield with capital stability and it is growing in prominence among pension plans and insurance companies in particular.”
IDF III has an investment period of four years. Jones adds: “Our focus is now on finding great assets on behalf of our IDF III investors to deliver them great performance. We have already secured four high quality assets for the fund and are seeing further opportunities across a range of sectors including renewables, telecommunications and energy distribution in OECD countries. Infrastructure companies increasingly view private mezzanine debt as an ideal source of funding for a range of their specialised financing needs.”
AMP Capital’s first infrastructure debt fund was closed to new investment in 2012 after raising USD500 million globally. Its second fund, IDF II, raised USD1.1 billion, with USD250 million in additional co-investment pledges.
Overall, the team, which comprises 13 investment professionals located in London, New York and Sydney, has invested more than USD3 billion in 58 infrastructure debt assets since 2001.
