IFC holds $1.2 billion final close for global infrastructure fund
IFC Asset Management Co. (AMC), a subsidiary of the International Finance Corp. (IFC), held a $1.2 billion close for its IFC Global Infrastructure Fund on Oct. 8. The firm exceeded its $1 billion target. The fund received capital commitments from 11 investors, including IFC and Singapore sovereign wealth fund GIC as anchor investors, and nine sovereign wealth fund and pension fund investors from Asia, the Middle East, Europe and North America.
The fund will make equity and equity-related investments alongside IFC in a broad range of infrastructure sectors in developing countries. It will be managed by an AMC team based in Washington, D.C., and Singapore. The IFC Global Infrastructure Fund aims to create a well-balanced portfolio diversified by region and by subsector, with investments in sectors such as power, transport, utilities and telecommunications.
“Poor infrastructure inhibits growth; improved infrastructure accelerates growth,” said Gavin Wilson, CEO of IFC Asset Management Co., in a statement. “While infrastructure investing has grown in developed markets, it is still largely an orphaned asset class in many emerging regions. What is missing is long-term risk capital that understands where the growth opportunities lie and recognizes the need for well-structured investments that address the real risks involved, not simply the perceptions of risk. The fund will help to fill this gap, taking advantage of the risk mismatch and benefiting from IFCʼs extensive track record and expertise in such investments.”
In the 2013 fiscal year, IFCʼs new investment commitments in infrastructure sectors totaled $2.7 billion, and IFCʼs committed portfolio in infrastructure sectors totaled more than $11 billion.