AMP Capital has held a $1.1 billion final close for its Infrastructure Debt Fund II, exceeding its $1 billion target. AMP Capital has also secured additional co-investment pledges of $250 million.
The infrastructure fund has started investing its capital, calling more than $400 million and securing five investments for its portfolio. Recent investments include subordinated loans to Canadian renewable energy company Alterra Power Corp. and U.S. power generation facility Astoria Project Partners.
Infrastructure debt has grown as an asset class and has increased in demand due to the recent volatility in markets around the world. According to AMP Capital, infrastructure debt offers stable and predictable yields.
“We are delighted that all of our key investment markets are contributing right now,” said Andrew Jones, AMP Capital global head of infrastructure debt, in a statement. “A strong pipeline of energy-related opportunities in the North American market at the moment is complemented by increasing M&A activity in Europe, with the sale of a number of regulated utilities across that region currently under way. We are also seeing some interesting resource-related opportunities in the Australian market.”
AMP Capital’s first infrastructure debt fund closed in 2012 after raising $500 million globally. AMP Capital has been investing in the subordinated debt of infrastructure assets since 1998 and has a team of 10 infrastructure debt investment professionals located in London, New York City and Sydney.