Hunt Companies, a privately-owned company dedicated to building value through the development, investment, management and financing of real assets, has agreed to take up an investment in Amber.
As part of the agreement, Hunt will acquire a 50% economic interest in Amber with the remaining shares in Amber continuing to be held by existing management shareholders. The terms of the transaction between Amber management and Hunt are intended to create long-term alignment, prohibiting any sale of shares by either Hunt or Amber management for at least four years.
International Public Partnerships Limited (INPP) will continue to operate and interact with Amber Fund Management Limited (AFML) as normal, and there will be no changes to management personnel within Amber. In addition AFML will continue to hold its c.8 million shares (c.1%) interest in INPP.
As part of this transaction, INPP has been granted a 'first look' over investment opportunities in the United States which meet the company's investment criteria. The United States is widely seen as one of the largest growth markets for infrastructure investment. This agreement is on similar terms to the company's existing agreement with AFML and provides that Hunt will present details to AFML of opportunities which are consistent with INPP's current investment portfolio.
Commenting on the announcement, Chairman of INPP, Rupert Dorey said:
"We are pleased to have got to know the Hunt Group of Companies. They are significant participants in public sector infrastructure in the US which is seen by the company as a significant growth market for infrastructure investment in the medium term. We are pleased to have extended our right of first look agreement with them and are optimistic that as a result we will see an enhanced flow of attractive investment opportunities from North America in future years. The transaction is a logical development for Amber and we are confident that our relationship with the Investment Adviser will benefit from this change."
Commenting on the announcement, Chief Executive of Amber, Giles Frost said:
"The US is the biggest infrastructure market in the developed world. We have long said that we will only make progress in that market with a strong experienced local partner. Hunt and Amber have a very similar outlook and range of experience, not only in infrastructure but also in other activities such as renewables and property. The Amber management team is fully committed to continuing to serve INPP into the future and to increase the range and quality of infrastructure opportunities that we originate as markets develop."