We reported this week that Connecticut Retirement Plans and Trust Funds is considering a $250m commitment to the IFM Global Value-Add Infrastructure Fund. IFM Investors is best known for its long-established global core infrastructure fund, a large open-ended vehicle originally set up for Australian superannuation funds. IFM is moving well and truly into the higher risk-return space alongside this fund and seeking to raise $2bn for the value-add fund.
Fundraising for higher-return infrastructure strategies appears to be strong at the moment. Boston Consulting recent report on infrastructure fundraising found that investors were favouring core-plus and value-add strategies, which together accounting for almost 70% of new funds raised.
According to IFM’s own research, 63% of more than 700 global institutional investors say higher-risk return solutions will draw more private capital into infrastructure.
Other examples of firms recently raising capital for value-add infrastructure include Vesper Infrastructure Partners, which secured €1bn for Vestper Next Generation Infrastructure Fund I, which pursues a European mid-market strategy.
In April, Colonial First State awarded a A$370m mandate to invest in Morrison’s global value-add infrastructure strategy, while ArcLight Capital Partners reached a final close on its ArcLight Infrastructure Partners Fund VIII, securing $3.9bn in commitments. ArcLight said the value-add fund was oversubscribed, exceeding the target capital commitment of $3bn by 30%.
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