AMP Capital raises $300m infrastructure fund

PowerlinesSwiss and UK institutional investors are among those that have committed $300 million (€224 million) to an infrastructure fund offered by AMP Capital.

The Australian-based investment manager says 17 institutional investors – including from Japan, Korea and Australia – have invested in the first close of the AMP Capital Infrastructure Debt Fund II (IDF II).

The fund will invest in the subordinated debt of infrastructure assets in the essential services of water, gas, electricity and transportation located in Europe, North America and Australia.

The funds first investment is a £50 million (€58 million) subordinated loan to London’s Heathrow Airport.

AMP Capital’s first Infrastructure Debt Fund closed to new investment in June 2012 after raising $503 million from 30 global institutional investors.

Andrew Jones, head of infrastructure debt at the firm, says: “Investors globally are seeking stable high cash yield, defensive and predictable investments and that’s why we’ve been so successful in attracting clients to IDF II.”

The portfolio is expected to consist of investments in the subordinated debt of 10 to 15 companies headquartered in OECD countries.

The unnamed investors include “one of the top insurance companies in South Korea”, the firm says.

This is the first direct infrastructure fund that AMP’s business partner, Mitsubishi UFJ Trust and Banking Corporation, has marketed to its clients.

AMP Capital has $131 billion of assets under management.

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