Direct infrastructure, the opportunity
Growing demand for new and renewed infrastructure It’s estimated that US$57 trillion in infrastructure investment will be required between 2013 and 2030i. With many governments still fiscally constrained, this creates opportunities for informed private investors to benefit from assets with the potential to generate both income and capital gains over the long term.
Compelling opportunities for long-term investors Infrastructure businesses typically provide essential services in controlled, monopoly style environments, often with revenues locked in by extended contracts or regulatory frameworks. As a result, they offer sustainable returns with low correlation to traditional asset classes or market cycles. That can make them an attractive investment for pension funds, insurers and other institutional investors with extended liabilities and investment horizons.
i McKinsey Global Institute, Infrastructure Productivity, 2013.
AMP Capital, direct infrastructure
Specialist expertise from an industry leader AMP Capital has long been recognised as an infrastructure pioneer. With over 28 years of infrastructure experience and dedicated expertise, with more than 120 separate unlisted equity and debt investments since 1988.
Proven investment process Our team of industry veterans follow a proven investment process to select outstanding assets with unrealised potential, then work with management and other equity holders to drive operational improvements and business growth.
Investment team collaboration Our process is underpinned by collaboration between specialist teams across AMP Capital, it is a key source of competitive advantage that has enabled us to deliver strong returns across market cycles.
AMP Global Infrastructure Fund
Targeting a gross IRR of 12–15%, including a cash yield of 4–6%, the AMP Capital Global Infrastructure Fund focuses on infrastructure businesses delivering an attractive combination of stable yields and ongoing growth in mature OECD markets.
Investors gain immediate access to a growing portfolio of seven high quality assets, creating instant portfolio diversification and cash yield.
The fund invests in assets across Europe, North America and other OECD countries, regions with a strong flow of opportunities and mature legal, tax and accounting frameworks.
The transport, energy, utilities and communications infrastructure sectors offer the largest number of opportunities and the best relative value in the current market.
We believe the deal flow is greatest, pricing pressures are less intense and there is the greatest potential for bilateral negotiations or proprietary transactions.
Our Investment Team has completed transactions representing over US$2.4 billion of equity since June 2012 and is ranked as the sixth most active infrastructure fund manager over the last three years.
The Global Infrastructure Fund Investment Team is based in London, New York and Sydney, with over 30 additional infrastructure investment professionals globally to support the Investment Team.
Understanding the risks
Like any investment, the Fund involves risks. The Fund may not meet its investment objective and, if it performs poorly, investors may not receive their capital back. So it’s important to read the Offer Memorandum for a full understanding of all of the risks, and to consult with your own advisors before deciding to invest.
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