Sanlam Investments has launched a Sustainable Infrastructure Fund that will focus on environmental sustainability as it invests in local (African) projects that drive economic growth, market development and job growth. It is targeting long-term, stable returns above inflation for investors.
The fund was launched with commitments of £24.5 million, but Sanlam hopes to attract institutional investors to invest c.£250 million into the fund. The Sanlam Group also expects to invest a further c.£300 billion of its own capital alongside the fund into projects that drive infrastructure development.
“We recognise that infrastructure is going to play a critical role in spurring the growth of our economy,” said Paul Hanratty, CEO of the Sanlam Group.
“We’re investing not only for our current generation but also for future generations.”
Investing largely in debt to finance projects, the sustainable infrastructure fund will target CPI plus 4.5% per annum. It has a minimum investment threshold of c.£1.25 million.
Investments will be focused on renewable energy, conventional energy, housing, transportation, communication, health, and water and waste-related assets. Sanlam has considerable experience in managing infrastructure investments in the region.