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Investors take control amid AMP Capital exodus

By Sarah Kendell
 — 1 minute read

Offshore investors in AMP Capital’s Global Infrastructure Fund II have closed ranks to ensure no further decisions are made around the fund’s remaining uninvested cash, as the fund manager deals with further departures from embattled executive Boe Pahari’s team.

It’s understood a meeting in May with the fund’s Limited Partner Advisory Committee (LPAC), made up chiefly of European investors in the closed-ended Global Infrastructure Fund (GIF) series, saw the committee implement a series of restrictions to ensure the remainder of uncommitted funds in GIF II were not invested without further consultation from the LPAC.

The investor group flagged concerns around turnover of key staff in AMP Capital’s global infrastructure team, with the fund manager’s global head of infrastructure equity, Boe Pahari – who was embroiled in scandal over sexual harassment allegations last year – announcing his exit from the business in April.

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AMP Capital’s UK-based global head of digital infrastructure Matt Evans is also leaving to pursue another role, while the group’s head of origination for infrastructure equity Simon Ellis is due to retire in October.

A spokesperson for AMP Capital said the fund manager had recently restructured its infrastructure equity leadership, and that the new team was “focused on delivering for our clients”.

“We’re engaging with our clients, including LPAC, throughout this process. While we transition, it’s good governance to work with LPAC regarding investments made by the fund,” the spokesperson said.

“The majority of capital in the AMP Capital GIF II has already been committed in quality infrastructure assets around the world, including three investments in the past 12 months.”

The spokesperson said relations with GIF investors had improved since the appointment of the fund manager’s new chief executive, Shawn Johnson, who commenced in June with a mandate to lead AMP Capital through its proposed separation from AMP.

It’s understood Mr Johnson has set up regular meetings to keep them informed of progress around the slated demerger and restructuring taking place within AMP Capital as a result.

“[Shawn’s] first priority is engaging with clients and teams across our business. With new leadership in place, we have a clear path forward to deliver on the proposed demerger of the Private Markets business in the first half of 2022,” the spokesperson said.

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Investors take control amid AMP Capital exodus
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