Fundraising - APRIL 2, 2014

AMP reaches $750m with its second infrastructure debt fund

by Reg Clodfelter

AMP Capital has raised an additional $450 million for its AMP Capital Infrastructure Debt Fund II, bringing its total fundraising to $750 million with the fund’s $300 million first close in August 2013.

The debt fund launched in December 2012 and is on pace to meet its fundraising goal of $1.0 billion by its target close date of Dec. 31, 2014. To date, it has received commitments from approximately 40 investors from North America, Asia Pacific and Europe.

“The momentum we're experiencing in raising funds for IDF II is very pleasing and we are on track to meet our final target of $1 billion,” Andrew Jones, global head of infrastructure debt for AMP Capital, said in a statement. “This reflects the increased interest in infrastructure debt globally. Specifically, investors who have joined IDF II like our defensive strategy and focus on delivering stable, attractive yields.”

The fund invests in the subordinated debt of assets in infrastructure sectors including water, gas, electricity and transportation in Europe, North America and Australia. It has already made multiple investments. In January 2014, the fund, in cooperation with its predecessor fund, IDF I, closed on a $100 million subordinated debt financing for New York City–based Astoria Project Partners, a fully operational, combined cycle power generation facility with a generating capacity of 550 megawatts. In total, the fund expects to invest in the subordinated debt of 10 to 15 companies.

“I'm looking forward to completing fundraising later this year and making additional investments in quality assets for IDF II,” Jones continued. “We have a strong pipeline and are seeing many opportunities to invest capital in mature markets.”

The success of the fund certainly does indicate the increased appetite globally for investment in infrastructure debt. Last month, Macquarie launched its first-ever pooled infrastructure debt fund.

Sydney-based AMP Capital has invested in the subordinated debt of infrastructure assets since 1998 and has $129.3 billion in assets under management as of Dec. 31, 2013. IDF I closed in June 2012 after raising $503 million from 30 investors.

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