AMP Capital has managed to secure $4.1 billion for its latest infrastructure mezzanine debt strategy, which was ahead of its original $2 billion target, by raising $2.5 billion for the AMP Capital Infrastructure Debt Fund III (IDF III), and by securing an additional $800 million in co-investment rights and a further $800 million from other investors.
The fund attracted interest from more than 125 investors from 12 countries with a particularly strong interest from institutional investors in Japan, Korea, Canada and Germany.
Like its predecessors, Fund III targets high-yield subordinated debt, capable of generating returns of about 10 percent. It has a global remit, with a focus on Western Europe, North America and, to a lesser extent, Australasia.
AMP Capital Infrastructure Debt Fund II closed in November 2014 at $1.1 billion, with plans to invest in a diversified portfolio of 10–15 assets with a focus on defensive, non-cyclical cash flow producing assets.
AMP Capital’s first infrastructure debt fund was closed to new investment in 2012 after raising $500 million globally.
