AMP Capital is celebrating a record $4.1 billion in commitments upon the final close on its infrastructure debt strategy, AMP Capital Infrastructure Debt Fund III (IDF III)—more than doubling its $2 billion target.
The Australia-based special investment manager—which features more than A$165 billion in funds under management—raised $2.5 billion for the mezzanine debt strategy, another $800 million in co-investment rights, and an additional $800 million from investors seeking access to its deal capabilities.
Believed to be one of the largest infrastructure debt strategy fundraises in the world, IDF III contains more than 125 investors from 12 countries—the strongest coming from Japan, Korea, Canada, and Germany-based institutional investors. It’s also AMP Capital’s third infrastructure debt fund in six years.
After it raised $500 million globally, AMP’s first infrastructure debt fund was closed in 2012. Its successor, IDF II, raised $1.1 billion—with $250 million in additional co-investment pledges.
“We had success in new markets such as Korea, where we raised more than $300 million, and Canada, where some of the country’s large pension plans invested in our strategy for the first time. Japanese investors, early adopters of infrastructure debt as an investment strategy, were also strong supporters of the fund,” said AMP Capital Global Head of Infrastructure Debt Andrew Jones in a statement. “Our focus is now on finding great assets on behalf of our IDF III investors. We have already secured four high-quality assets for the fund and are seeing further opportunities across a range of sectors, including renewables, telecommunications, and energy distribution in OECD countries. Infrastructure companies increasingly view private mezzanine debt as an ideal source of funding for a range of their specialised financing needs.”
IDF III has a four-year investment period.