Aberdeen Asset Management has launched its fifth infrastructure fund.
Aberdeen Global Infrastructure II employs the same investment approach as previous funds. The new fund will invest in social and economic infrastructure projects underpinned by long-term secure government contracts characterized by stable and partially inflation-linked cash flows. It will invest in all major sectors of social and economic infrastructure including, but not limited to, health, education, social housing, government accommodation, roads, bridges, rail, rolling stock and waste management.
Aberdeen has a bias toward greenfield infrastructure and is focused on geographic areas where the firm sees a level of political stability and visibility on government infrastructure procurement policy. Aberdeen notes that, outside Europe, the potential for investment in infrastructure is very promising, with Australia still proving to be one of the most active markets for public-private partnership investors. According to Aberdeen, activity in North America is on the increase although this comes with the added complexities of a state-by-state procurement regime and little input from central government.
As of June 30, Aberdeen manages approximately $2.2 billion in infrastructure mandates on behalf of clients around the world.