InstarAGF Management said on Wednesday its flagship infrastructure fund had closed its first round of fundraising with $372 million (US$277 million) in firm equity commitments, roughly half the fund’s eventual target size.
Toronto-based InstarAGF, an asset management joint venture between Instar Group Inc and AGF Management Ltd, had said last September it planned to raise between $400 million and $450 million in the first fundraising for InstarAGF Essential Infrastructure Fund.
The fund, which focuses on mid-sized infrastructure assets in North America, said it attracted a high-quality group of institutional and high net worth investors from Canada, Europe, the United Kingdom and the United States.
Bond yields near historic lows and equity market volatility have prompted many big investors in recent years to allocate more capital to alternative assets such as infrastructure, real estate, private equity and hedge funds.
About $135 million of the capital raised by InstarAGF has already been committed to an investment in the passenger terminal at Billy Bishop Toronto City Airport and a 30 megawatt wind power development project in British Columbia.
InstarAGF said it now expects to achieve the final closing of the fund, which has a targeted size of $750 million, by the end of 2016.
(Reporting by Matt Scuffham in Calgary, Alberta; Editing by Matthew Lewis)
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
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