InstarAGF Asset Management Inc. and AGF Management Limited have announced the InstarAGF Essential Infrastructure Fund has now raised approximately CAD522 million (US$388 million) in aggregate equity commitments from institutional and high net worth investors, representing approximately 70% of the fund’s targeted CAD750 million size.
The fund seeks to acquire energy, utilities, civil and social infrastructure assets that exhibit sustainable downside protection, typically as a result of long-term contracts, concession agreements or a regulatory regime, and where InstarAGF’s expertise and ability to add value to the asset creates the potential for capital appreciation.
Approximately $210 million, or 40%, of the capital raised by the fund has already been committed to three investments: an interest in the passenger terminal at Billy Bishop Toronto City Airport, a transportation hub for the city of Toronto and surrounding region; a 30-megawatt wind power development project in British Columbia that is expected to start operating in the first quarter of 2017; and an interest in Steel Reef Infrastructure Corp., a Canadian midstream energy services company that operates in top-quartile basins in Western Canada.
Gregory Smith, President and Chief Executive Officer of InstarAGF, said:
“We deeply appreciate the support we have received from an exceptional and diverse group of investors in Canada and internationally.InstarAGF’s middle-market, North American focus is distinctive and positions us to deliver stable income and long-term value to our investors as we help communities and partners to renew, build and modernize their critical infrastructure.”