Global fund manager IFM Investors has announced a partnership with Korea-based Samsung Asset Management to create a US$480 million global infrastructure debt fund.
The new fund will target infrastructure assets in Australia as well as countries with a minimum A- sovereign credit rating in North America and Europe, focusing on public private partnerships, power, renewables, utilities and midstream, IFM Investors said.
The company said four Korean institutional investors had invested a combined US$480 million into the new fund, which Samsung Asset Management chief executive Koo Sung-Hoon said would benefit from “ageing infrastructure in developed markets needing replacement”.
“This fund brings together the expertise of IFM Investors in this market and the investment capability of Samsung Asset Management,” Mr Koo said.
“We expect, with this collaboration, to be able to offer stable returns to local institutional investors who are further diversifying their investments to overseas alternatives amid the current low-interest and low-growth investment environment.”
IFM Investors chief executive Brett Himbury said the company looked forward to working with Samsung Asset Management and was “excited” by the new fund.
“Korea is Australia’s third largest trading partner and this collaboration in financial services is a logical extension of the strong relationship that exists between our two countries,” Mr Himbury said.
“It also benefits Australian investors by providing an additional source of capital from like-minded institutional investors, further increasing access to global investment opportunities and adding to member returns.”