Money manager AGF Management Ltd. has achieved the initial close on its infrastructure fund, an activity it launched about 1 . Five years back as a way of diversifying an investment opportunities open to its institutional and retail clients.
After the markets closed on Wednesday AGF and InstarAGF Asset Management Inc., the entity which will manage the investments, announced they’d received $372 million in “firm” equity commitments from a number of institutional and value investors located in The usa and Europe.
At $372 million, the quantity raised is about half of what the fund, the InstarAGF Essential Infrastructure Fund, had hoped to enhance. In a release, AGF added there is the possibility of “cornerstone investors,” to take a position another $50 million prior to the closing from the fund. The goal is always to raise $750 million after the entire year. The fund started seeking investors last April.
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Blake Goldring, AGF’s leader, expressed his appreciation for what the fund has raised. “Our technique is to diversify and make [a platform of] alternatives and become an individual during this space. This really vindicates our investment into this sector.” The push into alternatives (additionally, it’s branched into purchasing mid-stream coal and oil) gives AGF a fourth leg to enhance its retail, institutional and price divisions.
The fund makes two investments for any total outlay of $135 million: it acquired a wish for the passenger terminal at Toronto’s Billy Bishop Airport in addition to focused on a 30-megawatt wind power development project in Bc.
The fund needs investments in the power and utilities sector or civil and social infrastructure assets “that exhibit sustainable downside protection, typically due to long-term contracts, concession agreements or perhaps a regulatory regime.” If the premiered the goal was to achieve annual returns inside the 8 per cent – 14 % range.
bcritchley@nationalpost.com
