Fortress to raise $1.9b for Japan's first infra fund - report

According to Reuters, the vehicle - the Fortress Japan Income Fund - will be the first of its kind in Japan and will look to invest in roads, airports and other infrastructure.

The Japanese government has been looking to facilitate more private investment in a number of public infrastructure assets in recent years in a bid to reduce its debt. Last June, the government unveiled a plan to raise as much as JPY3 trillion over the next decade by selling rights to run airports and other public facilities.

The process of selling the rights to operate Sendai Airport - damaged by the March 2011 earthquake - to public investors is currently underway, while the sale of rights to operate New Kansai International Airport and Osaka International Airport is also being planned.

Despite these developments, some private equity investors still have to overcome the negative public perception of foreign investment in public infrastructure. Only last month, US private equity firm Lone Star saw its winning bid for Japan rail operator Osaka Prefectural Urban Development (OPUD) blocked by the Osaka prefectural government amid public pressure.

Meanwhile, Japan's pension funds have increasingly expressed interest in infrastructure assests overseas. Earlier this month it was revealed that Japan's Government Pension Investment Fund will join Canada's OMERS in investing in infrastructure abroad.

Fortress typically invests in distressed assets. In December 2012, the firm reached a final close on its second Japan distress fund at $1.6 billion.

 

 

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• Topics
• North Asia
• Infrastructure
• Fundraising
• Japan
• Infrastructure
• Fundraising
• Fortress Investment Group