Melbourne-based IFM Investors (IFM) has launched a US-focused pooled debt fund, a first for the manager, who has traditionally raised money for infrastructure debt investments through global separate accounts, PDI sister publication Infrastructure Investor exclusively reported.
The fund is eyeing an initial $400 million first close by the early summer, targeting returns of between 400 and 600 basis points over LIBOR. The US has long been a focus of IFM’s infrastructure debt business, but the new vehicle is intended to capture capital flows from smaller to medium-sized institutional investors not large enough to take on separate accounts with IFM.
IFM manages some $14 billion of debt investments including. The Australian manager, which is unique in that it is owned by 29 pension funds, has over $20 billion in infrastructure equity investments. Since mid-2014, its investments in Vienna Airport, Freeport LNG, Mexican toll road operator Conmex and the US’ Indiana Toll Road have seen it deploy close to $5 billion in equity.
IFM’s current limited partner pool includes 180 institutional investors, with only 70 being Australian.