How the fund works.
As pioneers in infrastructure debt, we have dedicated specialists with skills and experience investing in the subordinated debt of defensive, non-cyclical infrastructure businesses headquartered in Western Europe, North America and Australia. Our experienced investment team directly structures and arranges subordinated debt using our strong proprietary deal flow through long standing sponsor relationships. We follow a detailed and rigorous due diligence program that has led to a successful track record for over 19 years. This approach delivers our clients lower volatility, strong risk-adjusted returns and consistent cash yields.
The fourth fund in our infrastructure debt fund series, AMP Capital Infrastructure Debt Fund IV is a US$4 billion, 10 year closed ended fund. It aims to provide long term investors with a target gross return of 10% with a focus on current cash yield.
Experienced investment team which has generated consistent returns through economic cycles
The investment team represents one of the world’s most experienced subordinated debt arrangers, underwriters and investors. Based in London, Sydney and New York, the investment team has more than 176 years of combined experience arranging, investing and monitoring infrastructure debt investments across a range of sectors and geographies.
A successful track record in infrastructure debt investing
The infrastructure debt team has a track record of investing in debt of infrastructure businesses dating back to 2001. In its history, this investment team has invested around US$8.8 billion in 80 infrastructure debt assets. AMP Capital is one of the longest standing participants in global infrastructure investments, with a prior track record commencing in 1988.
Extensive deal sourcing capability
With a key focus on originating and structuring tailored mezzanine solutions for infrastructure assets, the team is able to source attractive investment opportunities which are only available to our investors. These skills allow us to maintain our extensive global network of relationships with issuers, equity providers and financial advisory firms of private infrastructure debt.
Strong deal flow
Currently in the global infrastructure debt market there are strong deal flow opportunities with limited competition from alternative junior lenders. These factors provide the potential to generate attractive risk adjusted returns focused on cash yield and represent a compelling opportunity for infrastructure debt investors.
Demand for infrastructure (including power, utilities, renewable energy and digital infratructure such as data centres and fibre networks) is set to continue to expand significantly over the next few decades, driven largely by global economic growth, changes in public policy and financing, technological progress, climate change, urbanization and growing population and congestion. Many parts of infrastructure systems in Organisation for Economic Co-operation and Development (OECD) countries are ageing rapidly, public finances are becoming increasingly unavailable, certain economies are facing increased fiscal deficits, and infrastructure financing has generally become more complex. In particular, as significant additional private and public capital is committed to greenfield infrastructure investment over the coming years, it is expected that opportunities to acquire brownfield infrastructure assets, either from the public sector or from private owners in secondary transactions, will also increase.
AMP Capital’s scale, widespread resources and brand provide the investment team with a unique competitive advantage in deal origination and execution. The investment team utilises the broader resources of the AMP Capital global infrastructure team, particularly the experienced industry research specialists. The team also has access to structuring and operating professionals with legal, tax and fund accounting skills.
The investment team represents one of the world’s most experienced subordinated debt arrangers, underwriters and investors. Based in London, Sydney and New York, the investment team has more than 127 years of combined experience arranging, investing and monitoring infrastructure debt investments across a range of sectors and geographies.
What are the key risks associated with the fund?
Prospective investors should refer to the Private Placement Memorandum and consider factors relating to investment risks. As a result of risk factors, as well as other risks inherent in any investment, an investment in the fund is not appropriate for all investors. There can be no assurance that the fund will meet its investment objective or that investors will receive a return of their capital. Prospective investors should consult with their own advisors before deciding to invest in the fund.
AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232 497) is the investment manager of the AMP Capital Infrastructure Debt Fund IV (USD), L.P., AMP Capital Infrastructure Debt Fund IV (USD Hedged), L.P. and AMP Capital Infrastructure Debt Fund IV (JPY), L.P. and is the investment adviser to AMP Capital Infrastructure Debt Fund IV (EUR), LP (collectively, the Fund). The Fund is not currently open for investment. Information about the Fund is contained in the private placement memorandum (Offer Document) available from AMP Capital for the Fund. The Offer Document contains important information about the Fund. The Fund is not registered as a managed investment scheme, nor will it be required to be registered as a managed investment scheme, and the Offer Document is not a product disclosure document lodged or required to be lodged with the Australian Securities and Investments Commission. Interests in the Fund were offered in Australia to persons to whom such securities may be offered without a product disclosure statement under Part 7.9 of the Corporations Act 2001 (Clth). Interests in the Fund subscribed for by investors in Australia must not be offered for resale in Australia for 12 months from issue except in circumstances where disclosure to investors under the Corporations Act 2001 (Clth) would not be required or where a compliant product disclosure statement is produced. Neither AMP Capital nor any other company in the AMP Group guarantees the repayment of capital or the performance of the Fund or any particular rate of return referred to in the Offer Document. Past performance is not a reliable indicator of future performance. While every care has been taken in the preparation of the Offer Document, AMP Capital makes no representation or warranty as to the accuracy or completeness of any statement in it including without limitation, any forecasts. Actual future results and operations could vary materially from any forecasts, estimates, or opinions. AMP Capital will not necessarily update the recipient of the Offer Document if any facts set out in the Offer Document subsequently change. The Offer Document has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. Investors should, before making any investment decisions, consider the appropriateness of the information in the Offer Document, and seek professional advice, having regard to their objectives, financial situation and needs. This content is not intended for distribution or use in any jurisdiction where it would be contrary to applicable laws, regulations or directives and does not constitute a recommendation, offer, solicitation or invitation to invest.