AMP Capital forms Asia infrastructure debt team
Australia’s AMP Capital has doubled down on its Asia Pacific infrastructure debt strategy with the creation of a dedicated team based across Sydney and Singapore.
It follows a $6.2 billion final close last year for AMP’s fourth infrastructure debt fund and a $2.5 billion close in 2017 for its third. The first two funds in the strategy raised $503 million and $1.1 billion in 2012 and 2014, respectively. The new team will be headed by Simon La Greca, an existing Sydney-based partner at the firm.
The idea is to respond to increasing LP interest in infrastructure debt as a means of accessing stable, yield-focused opportunities in increasingly volatile market conditions. Traditionally, AMP has targeted both construction projects and established businesses, aiming to fulfill demand for mezzanine debt between senior debt and equity funding.
“We recognize there is currently a funding gap for infrastructure projects in Asia, and that’s why we are making the region a key strategic priority,” La Greca said in a statement. “AMP Capital already has a strong track record in infrastructure debt across North America and Europe – the Asia strategy will form the third pillar of our global infrastructure debt business.”
Recent activity in this space includes a $145 million mezzanine debt investment in May to support Stonepeak Infrastructure Partners’ acquisition of Taiwanese offshore wind farm developer Swancor Renewable Energy. The investment will help advance the construction of a 376-megawatt facility called Formosa II that has a 20-year offtake deal with state-owned Taiwan Power Company.
AMP has been active in infrastructure since the 1980s. The firm claimed to have A$23.1 billion ($16 billion) of assets under management in the asset class as of June 2019. Earlier this year, it raised $3.4 billion for its latest global infrastructure fund targeting transport, communications, health, and energy in developed markets. The predecessor vehicle closed on $2.4 billion in 2017.
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