AMP Capital has raised US$4.1bn (€3.5bn) from more than 125 investors to invest in infrastructure debt.

The Australian fund manager said it raised US$2.5bn for the AMP Capital Infrastructure Debt Fund III, US$800m for co-investments and a further US$800m from investors that “want access to its deal capabilities”.

AMP’s Capital’s third infrastructure debt fund in six years had an original capital raising target of US$2bn. Its first raised US$500m in 2012, and its second secured US$1.1bn plus US$250m for co-investments in 2014.

Andrew Jones, AMP Capital’s global head of infrastructure debt, said: “We have exceeded our expectations, attracting interest beyond the fund’s hard cap of US$2.5bn and securing an additional US$1.6bn in co-investment and other commitments for infrastructure debt deals brokered by AMP Capital.”

The investors are from 12 countries and AMP said Capital said there was strong interest from Japan, Korea, Canada and Germany. 

Four UK local government pension schemes (LGPS), including the Northamptonshire, East Riding and Cambridgeshire funds, committed a combined US$100m.

“We had success in new markets such as Korea, where we raised more than US$300m, and Canada where some of the country’s large pension plans invested in our strategy for the first time,” Jones said.

Infrastructure mezzanine debt is becoming more popular with pension plans and insurance companies in particular, Jones said, appealing to their appetite for yield and stable capital values.

The fund has an investment period of four and has already acquired four assets.