AMP Capital has launched its Global Infrastructure Fund and has attracted a significant commitment from global private equity and infrastructure investor Pantheon into its global infrastructure platform.
AMP Capital has created the platform by converting its successful Strategic Infrastructure Trust of Europe (SITE) from an open-ended to a closed-ended European fund and launching the Global Infrastructure Fund.
SITE's existing portfolio comprises US$750 million worth of assets, which will be shared with the Global Infrastructure Fund. The fund is aiming to raise a further US$1.25 billion of new commitments, giving the global infrastructure platform an overall target size of US$2 billion.
The seed assets will provide new investors with access to an existing diversified portfolio of infrastructure businesses including Newcastle Airport, Angel Trains, Alpha Trains, Thames Water, CLH and Greater Gabbard OFTO. Access to such high-quality seed assets is unique for a closed-ended structure. Inflows into the Global Infrastructure Fund will be further used to acquire new assets in OECD countries in sectors such as transport, communications, and utilities.
AMP Capital Head of Infrastructure for Europe and the Americas and Managing Partner of the Global Infrastructure Fund Boe Pahari said:
"AMP Capital's Global Infrastructure Fund gives a broader range of investors around the world a new and unique opportunity to tap into an asset class that is going from strength to strength.
"There is strong demand for an investment vehicle that can take advantage of the significant investment opportunities driven by the global need for infrastructure. The platform we have created, which offers new investors immediate access to highly attractive and diversified seed assets, represents an opportunity that we believe is unmatched in the market. Pantheon's investment into our global infrastructure strategy is a vote of confidence in what we have created.
"The Global Infrastructure Fund represents the evolution of AMP Capital's proven infrastructure strategy, which is managed by our world-class investment team. The fund will appeal to the growing number of institutional investors who are boosting their allocations to infrastructure, attracted by its predictable risk-adjusted returns, consistent yields, reduced volatility relative to equities, portfolio diversification and capital stability."
Confirming the commitment, Pantheon Partner for European Infrastructure Andrea Echberg said:
"We believe this investment presents an exciting opportunity for us and our clients. We are happy to be participating."
AMP Capital has been investing in infrastructure for more than 25 years, making it one of the world's oldest and most established infrastructure investors. According to the 2014 Preqin Global Infrastructure Report, AMP Capital was the 6th most active infrastructure manager globally during the last three years.