AMP Capital has reached final close on its third infrastructure debt fund, securing commitments of US$4 billion from investors worldwide.
The AMP Capital has raised over US$4 billion ($5.05 billion) for its Infrastructure Debt Fund III, including US$2.5 billion for the mezzanine debt strategy, $800 million in co-investment rights and US$800 million from investors who want access to deal capabilities.
The fund, known as 'IDF III', has an initial target of US$2 billion and a 'hard cap' of US$2.5 billion.
AMP Capital global head of infrastructure debt Andrew Jones said, "I’m thrilled at the level of confidence in the infrastructure debt asset class and our team as evidenced by our successful fundraise for Infrastructure Debt Fund III.
"We have exceeded our expectations, attracting interest beyond the fund’s hard cap of US$2.5 billion and securing an additional US$1.6 billion in co-investment and other commitments for infrastructure debt deals brokered by AMP Capital. These commitments will be called on after the fund makes its allocation to each investment.
"We had success in new markets such as Korea, where we raised more than US$300 million, and Canada, where some of the country’s large pension plans invested in our strategy for the first time. Japanese investors, early adopters of infrastructure debt as an investment strategy, were also strong supporters of the fund.
"Infrastructure mezzanine debt appeals to investors looking for an attractive yield with capital stability and it is growing in prominence among pension plans and insurance companies in particular."
IDF II raised US$1.1 billion with US$250 million in co-investment pledges, and the first fund was closed to new investment in 2012 after raising US$500 million globally.