AMP Capital has launched the AMP Capital Infrastructure Debt Fund II (IDF) to institutional investors, following significant growth in demand for infrastructure investment in developed markets from investors in Asia, Europe and North America.
The fund will invest in the subordinated debt of infrastructure assets in the essential services of water, gas, electricity and transportation in Europe, North America and Australia.
IDF II follows the success of IDF I, which was launched in late 2010 and closed to new investment in June 2012. The fund attracted 400 million from 30 global institutional investors including Chinese, Japanese, US, German, Australian and UK pension and endowment funds. IDF I has so far invested 218 million in six subordinated loans in Europe and North America.
AMP Capital Global Head of Infrastructure Debt Andrew Jones said the company was launching its second infrastructure debt fund as a result of rising demand from pension plans and insurance companies looking for stable, yield focused investment opportunities.
"Significant growth in demand for infrastructure investment in developed markets combined with the attractive market environment and strong deal flow makes it an opportune time for us to launch a second infrastructure debt fund," Mr Jones said.
"With increased demand for infrastructure debt investments we are aiming to raise US$1 billion (approx. 0.7 billion) for the new fund. Our global market leading team with an 11-year track record of generating consistent returns through economic cycles is strongly positioned in terms of its objective to generate attractive yield-focused returns for investors." added Mr. Jones
In addition, AMP Capital has appointed Patrick Trears to the new role of Director in the infrastructure debt team based in New York, to invest in increasing opportunities for debt investment in essential infrastructure assets across North America.
"We are pleased to appoint Patrick who will use his extensive debt origination experience to expand deal flow for both infrastructure debt funds in North America," Mr Jones.
Mr Trears has 12 years' industry experience in US and European markets and joins AMP Capital from WestLB where he was responsible for project and acquisition finance transactions in the Americas. Prior to this he held structured and project finance positions at Hypo Real Estate, Citi Investment Bank and DEPFA Bank (Ireland).
Mr Trears starts Monday 3 December 2012 and reports to Mr Jones.
AMP Capital's global infrastructure debt team has eight investment professionals located in London, New York and Sydney. The investment team has successfully invested more than US$1.7 billion (approx. 1.3 billion) (as at 30 September 2012) in 37 infrastructure debt assets since 2001.
Source: AMP Capital