AMP Capital has raised $3.4 billion for a new global infrastructure fund, exceeding its target as money pours into the burgeoning sector.
The fund, which had an initial target of $3 billion, “is a significant step in the global growth of our infrastructure business,” Boe Pahari, global head of infrastructure equity at Sydney-based AMP Capital, said in an emailed statement. “Our approach brings private equity-style rigor to infrastructure investing, influencing and delivering on business performance, and ensuring the provision of high-quality essential services.”
The vehicle, known as AMP Capital Global Infrastructure Fund II, raised capital from more than 60 institutional clients including family offices. Its pension and sovereign wealth fund backers include PensionDanmark, Kempen Private Markets Fund, West Yorkshire Pension Fund and Ilmarinen Mutual Pension Insurance, according to disclosures and data compiled by Bloomberg.
Infrastructure funds are stockpiling unprecedented levels of new cash as investors look to alternative assets for growth and income. In 2019, they collectively amassed a record $98 billion, taking the industry to $212 billion of so-called dry powder, according to Preqin data.
The AMP Capital fund, which has secured more than $1 billion in co-investment commitments, has already backed entities including London Luton Airport, specialist-care provider Achieve Together, U.S. fiber company Everstream and data center services provider Expedient.
“There’s less performance chasing than you saw in the past, and that’s a positive thing,” an expert says.
A record 253 infrastructure funds are in the market, seeking to raise $203 billion among them, Preqin said last week. Morgan Stanley gathered $5.5 billion in December for its latest global infrastructure fund, which invests in the Americas, Europe and Asia Pacific.
