Keppel Corporation has raised US$575m (€545m) in capital and co-investment commitments for its open-ended Asia-Pacific infrastructure fund.

Keppel Core Infrastructure Fund (KCIF) has held a first close and has initial target size of US$2.5bn.

It will focus on defensive and essential infrastructure assets with long-term, predictable cash flows across developed markets in the region. 

Christina Tan, Keppel’s CEO of fund management and CIO, said: “The robust demand reflects the appeal of critical infrastructure assets with inflation-protected cash flows.”

Tan said KCIF would take advantage of urbanisation trends in Asia-Pacific which are accelerating demand for essential infrastructure in the economic and social, energy transition and digital sectors.

“KCIF will also draw on Keppel’s development capabilities and strong operational track record to undertake appropriate value-add initiatives which will enable the fund to deliver sustainable and predictable returns to investors over the long term,” she added.

KCIF is Keppel’s third infrastructure fund, alongside Keppel Asia Infrastructure Fund and the Singapore-listed Keppel Infrastructure Trust.