Canada's Integrated Asset Management (IAM) has approached investors seeking capital for a new infrastructure debt strategy, PDI can reveal. The new fund is IAM's first infrastructure debt vehicle and is targeting around $300 million to $400 million from investors.
The firm is also marketing its fifth corporate debt fund, the successor vehicle to Integrated Private Debt Fund IV, which reached a final close of $387 million in October 2013.
IAM declined to comment on the fundraising.
The firm is hoping IPD Infrastructure Debt Fund will close towards the end of the year. Though the firm has not raised money for infrastructure debt specifically before, it has made a number of infrastructure-like investments within its existing portfolio of corporate debt, lending in support of both brownfield and greenfield projects, a source told PDI.
The firm's senior-only debt strategy has always been low-risk and so infrastructure-like deals, though with more limited tenors, fit within the existing lending mandate, the source said.
The new infrastructure vehicle will offer longer maturities to borrowers, the source added. IAM's existing private debt funds are limited to a maximum ten-year tenor.
IAM is headquartered in Toronto and manages a range of alternative strategies in Canada including private debt and real estate. The private debt business was established as First Treasury in 1987, which IAM acquired in 2000. It closed the first private debt fund at $600 million in 2004.