AMP Capital launches new infrastructure debt fund

AMP Capital has started fundraising for its third infrastructure debt fund in five years with a target of $2 billion in commitments from institutional investors around the world.

AMP raised $1.1 billion with its last infrastructure debt fund and it also attracted $250 million in co-investment pledges. The fund is considered suitable for pension funds and insurance companies seeking yield and it will invest in key infrastructure sectors such as utilities, energy and transport in OECD countries. Andrew Jones, global head of infrastructure debt, AMP Capital, said: “IDF III looks to capitalise on the success of both IDF I and IDF II and the target size, which is double that of IDF II, reflects the strength of the infrastructure debt asset class as well as the investment pipeline created by our team. For IDF III, we will continue to focus on finding compelling mezzanine opportunities in infrastructure businesses in developed countries. Investors have told us they are looking for investments with high yield and stable returns, both characteristics of infrastructure debt and what our IDF I and II funds have delivered to their investors.”