Private equity firm Pantheon is among investors backing AMP Capital’s new global infrastructure strategy.
AMP is converting its existing open-ended Strategic Infrastructure Trust of Europe (SITE) fund into the closed-ended Global Infrastructure Fund, for which the manager is seeking to raise a total of $2bn (€1.57bn).
Boe Pahari, AMP head of infrastructure for Europe and the Americas, told IP Real Estate that investors in SITE were in favour of moving to the new global fund.
Pahari said new investors – including pension funds and sovereign wealth funds from Australia, the Middle East, North America and Asia – had backed the fund. Family offices have also committed, he added.
“The fund will appeal to the growing number of institutional investors boosting their allocations to infrastructure, attracted by predictable risk-adjusted returns, consistent yields, reduced volatility relative to equities, portfolio diversification and capital stability,” Pahari said.
An existing $750m European infrastructure portfolio will be transferred to the fund, including Newcastle Airport, Angel Trains, Alpha Trains, Thames Water, CLH and Greater Gabbard OFTO.
The fund will invest further in brownfield transport, communications and utilities in OECD countries.
“The seeded assets give new clients visibility, which has been an issue,” Pahari said.
“Seasoned, well-managed assets allow new investors to see what they’re buying in to, without the risks, costs and uncertainties you’d otherwise be exposed to.”
Pantheon has typically invested in infrastructure through secondaries, co-investments and primaries. The firm is focused on developed infrastructure markets where opportunities arise from underinvestment in infrastructure, ongoing privatisation by governments and opportunities from the private sector. Developing markets are not off the firm’s radar.
- AMP Capital
- Asia-Pacific Investors
- Australian Investors
- Canadian Investors
- Capital Raising
- Closed-ended funds
- European Investors
- Family Offices
- Investment Vehicles
- Middle Eastern Investors
- North American Investors
- Open-ended funds
- Pension Funds
- Sovereign Wealth Funds
- US Investors