JP Morgan infra raises commitments from 11 European LPs

05 March 2019 - 12:00 am UTC

JP Morgan Asset Management (JPMAM) is understood to have signed up 11 new European investors to its sole global infrastructure fund.

The New York headquartered asset manager has raised in its latest round of fundraising for JP Morgan Infrastructure Investment Fund (IIF) commitments from European pension funds and insurance companies.

In total, IIF, which was launched in 2006, has deployed around USD 7.1bn (EUR 6.2bn) over the last five years, largely in North America, Western Europe and Australia. 

The fund targets investments in mid-market operational infrastructure assets with a focus on long-term contracted and regulated cash flows.

The latest LPs to commit to the fund include Swiss pension funds Société Vaudoise de Pharmacie, Garages Vaudois, Centre Patronal and Fonds Interprofessionel. 

They are joined by British pension funds Flintshire County Council, the pension funds of the London Boroughs of Merton and Wandsworth, and private pension scheme Savills Pension Trust. 

These investors form part of a large UK LP contingent of investors in the fund. Of the fund’s 346 LPs, 22% are UK investors, while some 70% of the fund’s capital has been provided by pension funds, according to a document seen by Inframation.

The fund’s other new LPs are Swiss insurance companies Centre Patronal and Vitems, and Norwegian marine insurance company Assuranceforeningen Skuld.

IIF, which is open-ended, holds fundraising closes at the end of each financial quarter. The latest LPs came in at the end of December, with a next close expected at the end of March. 

The fund’s current portfolio comprises 17 companies with 326 underlying assets, according to the document seen by Inframation.

As of October 2018, the fund’s NAV exceeded USD 9.8bn (EUR 8.6bn), up from USD 6.05bn (EUR 5.6bn) in March 2017. In June 2013 the fund’s NAV stood at USD 3bn (EUR 2.3bn). 

The total size of its commitments is not known as the manager fundraises continuously.

Open-ended funds have the advantage of providing LPs with an existing portfolio of assets and immediate yield generation.

However, such funds are rare in Europe, with Columbia Threadneedle’s European Core Infrastructure Fund expected to be the only exclusively European-focused open-ended fund when it comes to market later this year.

IIF employs a buy-and-grow strategy. According to documents seen by Inframation, several expansion investments were made by the platform companies in JP Morgan’s portfolio in the third quarter of 2018. Expansion investments up to the end of the third quarter of 2018 accounted for 79% of net invested capital. 

These investments included Beacon Rail Leasing’s acquisition of 10 new locomotives in the UK and the Nordics, an increase in ownership in North Queensland Airports, the remaining stake in Southwest Generation and solar PV expansions with Sonnedix Power Holding in Italy.

 

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