AMP Capital has launched a dedicated global direct investments team, the firm announced, looking to tap LPs aiming to co-invest alongside AMP’s equity funds.
The move comes amid a “growing preference” for direct equity investments among institutional investors, AMP said in a 24 January press release.
Dylan Foo, AMPs Head of Infrastructure Equity, Americas, will oversee the effort as the global head of direct investments, while also continuing in his existing role. Associate Director Patsy Sandys will serve as the Europe lead on the direct investments team.
AMP has tapped LP co-investments in the past. When AMP bought the UK’s Luton Airport from Ardian in April 2018, the deal included co-investment from two UK pension funds, Inframation understands.
“Having established ourselves as a global mid-market sector specialist, supported by a number of landmark deals across multiple geographies, we understand how important it is for our large clients to increase their access to these [infrastructure] opportunities,” AMP Capital Global Head of Infrastructure Equity Boe Pahari said in the press release.
Pension fund giants CalPERS and CalSTRS have both conducted studies to become more involved in co-investments, separately managed accounts and direct investments for infrastructure assets.
CalPERS infrastructure investment consultant Meketa Investment Group ultimately recommended that the pension fund advance those strategies. CalPERs already has equity stakes in Indiana Toll Road, Port of Melbourne and UK-based Gatwick Airport.
Meanwhile, CalSTRS had been eyeing an increase in its inflation sensitive portfolio team, which manages the pension fund’s real assets to account for its new strategy. CalSTRS is set to discuss the issue at its 30 January Investment Committee meeting.
AMP is currently fundraising for its Capital Global Infrastructure Fund II, according to Inframation data, with the fund targeting USD 3bn.