Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

£80bn Australian infrastructure debt giant plans UK fund launch

£80bn Australian infrastructure debt giant plans UK fund launch

One of the world’s oldest infrastructure investors is looking to the UK market to launch a closed-ended infrastructure debt fund, which will diversify its client base.

Australian firm AMP Capital, which was founded in 1849 and has more than $135 billion (£80 billion) in assets under management, is hoping to raise £150 million for the Infrastructure Debt Fund Limited, scheduled for launch in the first half of this year.

The fund, which is in early stage development, will be listed on the London specialist funds market. It will invest into the existing AMP Capital Infrastructure Debt Fund II, which raised $303 million at launch last August and is looking to grow this to $1 billion.

The underlying fund invests in the subordinated debt of defensive, non-cyclical infrastructure businesses in Western Europe, the US and Australia.

It aims to deliver a Libor-linked cash yield of Libor +5-6%, paid quarterly and a net internal rate of return (IRR) of +7% per annum. Its predecessor fund, Infrastructure Debt, has averaged a gross annualised IRR of 8.9% and an 8.2% yield.

Estimated charges are 0.6% of net asset value once fully invested, with a 15% performance fee on returns over Libor +350 basis points.

AMP Capital’s Andrew Jones said: ‘Investor appetite has been very strong.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Hugh Yarrow: Why the equity income sector needs fixing

Hugh Yarrow: Why the equity income sector needs fixing

Hugh Yarrow's Evenlode Income fund was recently removed from the Investment Association's UK Equity Income sector.

Play GAM charity football tournament: the live draw

GAM charity football tournament: the live draw

Former Chelsea and England footballer Graeme Le Saux visits Citywire to make the draw for the tournament, where all proceeds going to Wheels for Wellbeing.

Play FIFA, Panama Papers…and what everyone’s getting wrong

FIFA, Panama Papers…and what everyone’s getting wrong

VIDEO: Investigative reporter Jeffrey Robinson reveals how major corruption scandals are being mishandled and what to expect next.

Your Business: Cover Star Club

Profile: JPM Wealth MD on breaking the glass ceiling

Profile: JPM Wealth MD on breaking the glass ceiling

During her tenure at JP Morgan, the private bank has changed the way it segments clients in a bid to improve focus

Wealth Manager on Twitter