IAM set to beat target following first close

The Canadian senior lender is raising its fifth corporate debt fund and is also in the market with its debut infrastructure debt vehicle.

Canada’s Integrated Asset Management (IAM) has reached a first close of C$385 million on its fifth corporate debt fund, putting it more than half-way to its overall target of C$550 million. The firm is set to hit a final close of around C$100 million over the target early next month, PDI understands.

Integrated Private Debt Fund V will, like its predecessor vehicles, target senior loans to investment grade borrowers. The firm’s fourth fund reached a final close of C$387 million in October 2013. 

Five of IAM’s existing investors have recommitted to the new vehicle while the firm has around nine new investors, a mix of pension funds and financial institutions including insurers and one endowment, are investing in the fifth fund, a source close to the situation told PDI

Since it closed its first fund in October 2004, IAM has now raised C$2.1 billion for lending to the Canadian mid-market. The first four funds produced a composite 10-year annualised 7.59 percent rate of return up to 30 September, the firm said. 

“Our investors continue to be drawn to the combination of enhanced yield, monthly distributions, diversification and reduced volatility. The funds make fixed rate, fixed term loans to mid-market businesses and projects across Canada. Typical uses of funds include refinancing existing debt, acquisitions, plant modernization or expansion, management buyouts and project financing. Our borrowers appreciate the fact that we often become a trusted advisor as well as a financing partner, working together to construct innovative, tailored financing solutions,” said Philip Robson (pictured), president of IAM Private Debt. 

The firm is also in the market with its debut infrastructure debt fund. That vehicle is anticipated to reach a first and final close of around C$300 million-C$400 million early next year, PDI understands. 

The lender has expanded its investment team to keep pace with its new strategy and larger deployment. The firm has made four new hires over recent months with one more person expected to join shortly. 

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 C$600 million in 2004.