IFM considering new infrastructure fund

16 May 2019 - 12:00 am UTC

IFM Investors has been considering raising a new global, core-plus infrastructure fund with a 10-year life that could be up to USD 2bn in size, sources say.

The GP has been working on the fund for about two years but has had more detailed discussions with investors in the past couple of months, according to three sources familiar who had seen early stage documents on plans for the fund.

The closed-ended fund would mainly be investing offshore, with only a few hundred million dollars able to be invested in its Australian home base, said one of the sources.

Its existing open-ended, Global Infrastructure Fund is mandated to invest in core, brownfield assets in OECD jurisdictions. IFM’s Australian fund can invest in a wider range of infrastructure, including greenfield assets, but the larger deals IFM prefers have been scarce in Australia lately.

However, sources close to IFM told Inframation the new fund is still at an early stage and it has yet to launch any formal marketing. They stressed it has been part of normal, regular discussions IFM has with its clients about options it is considering.

The board of IFM, chaired by former Labor politician Greg Combet, still needs to sign off on the new fund before it can launch, said one of the sources familiar.

IFM has been considering a new fund since 2017 that could invest in core plus assets or possibly assets in emerging markets with higher risk and higher return characteristics, sources close to the fund have previously told Inframation.

IFM has also been looking to broaden its investments elsewhere, including doing bigger private equity deals.

The various plans have led to some internal moves.

Earlier this year, Quentin Law moved from its infrastructure division to private equity. In September 2018, David Dawson moved from private equity into the infrastructure team.

In April 2018, IFM launched International Property Funds Management with Industry Super Property Trust to invest in global unlisted real estate.

 

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