AMP Capital raises record USD6.2bn for infrastructure debt strategy
AMP Capital has raised a record USD6.2 billion for its fourth infrastructure debt strategy, which includes the final close of the AMP Capital Infrastructure Debt Fund IV (IDF IV), co-investment rights and separately managed account commitments.
Central to the fundraise is the final close of the IDF IV, which reached its hard cap of USD4.0 billion, surpassing its USD3.5 billion target. An additionalUSD1.0 billion was secured in co-investment rights and a further USD1.2 billion from investors wanting access to AMP Capital’s infrastructure debt deal capabilities.
This is AMP Capital’s largest ever closed-end fund and is believed to be the largest fundraise in the world for an infrastructure mezzanine debt strategy.
AMP Capital Global Head of Infrastructure Debt Andrew Jones says: “We’re thrilled with the level of interest we’ve received for our fourth infrastructure debt strategy. In less than a year, a total of 86 investors from 14 countries invested in IDF IV with strong demand from institutional investors in Korea, Japan, Canada and the UK.
“More than 30 institutional investors joined the strategy for the first time, which is testament to the growth of our global distribution network and an indication of the increasing demand for infrastructure debt investments. Approximately USD1.2 billion was raised in Korea alone, where we continue to have strong interest from new and existing clients.”
During the year, more than USD2 billion of funds raised has been deployed into 10 high-quality assets located around the world, including a district heating business in Europe and a data centre in North America.
Jones says: “We’re now focused on securing quality investments to deploy the remainder of the capital with a focus on energy, utilities, digital technology and transport infrastructure in OECD and developed countries. We have strong expertise in these sectors and are excited by the pipeline of investment opportunities we’re evaluating for our investors.”
The successful fundraise continues AMP Capital’s growth momentum in real assets – infrastructure and real estate – and further cements its reputation as a global leader in both equity and debt investments.
The fundraise follows the success of AMP Capital’s Infrastructure Debt Fund III, which raised USD2.5 billion and an additional USD1.6 billion in co-investment and other commitments in 2017.
AMP Capital’s infrastructure debt team comprises 16 investment professionals located in London, New York and Sydney. Since 2001 the team has invested more than USD7.4 billion in 76 assets.