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InstarAGF wraps up sophomore infrastructure fund at $1.2bn

InstarAGF Asset Management, a Canadian mid-market infrastructure investment firm, has closed its second flagship fund.

InstarAGF Asset Management, a Canadian mid-market infrastructure investment firm, has closed its second flagship fund. InstarAGF Essential Infrastructure Fund II raised US$1.2 billion, ahead of its US$1 billion target. Instar was founded in 2014 by president and CEO Greg Smith, formerly the head of Brookfield Financial’s global infrastructure advisory group.

PRESS RELEASE

TORONTO, June 08, 2020 (GLOBE NEWSWIRE) — InstarAGF Asset Management Inc. (“InstarAGF”), an independent private capital management firm focused on North American middle-market infrastructure, today announced the final closing of its latest flagship infrastructure fund, the InstarAGF Essential Infrastructure Fund II (“Fund II”), with approximately USD$1.2 billion in aggregate equity commitments from institutional and high net worth investors across Canada, Europe, the United States, the Middle East and Asia. Fund II, which exceeded its US$1.0 billion target, achieved an 80% participation rate from existing investors, reflecting the team’s focus on building long-term relationships with its limited partners.

Fund II’s predecessor fund, the InstarAGF Essential Infrastructure Fund I, closed in 2017 with CAD$740 million in commitments. InstarAGF’s robust co-investment program has also delivered approximately CAD$1.0 billion in co-investments to its fund investors across its growing, diversified infrastructure platform.

“We are delighted to close our second infrastructure fund with strong continuing support from our investors, for which we are grateful,” said Gregory Smith, President and CEO of InstarAGF. “InstarAGF was formed to capture the distinctive value proposition of the middle market, which is where a majority of the infrastructure investment need exists in North America. We seek to share our strategic counsel, operating and financing expertise, and extensive relationships to help exceptional infrastructure businesses grow, succeed and deliver compelling risk-adjusted returns for our investors.”

Fund II, which has already deployed approximately 35% of its capital, focuses on high quality civil, utilities and energy 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 discipline, expertise and ability to add value to the asset creates the potential for capital appreciation.

Mr. Smith added, “We are well positioned to capitalize on diverse opportunities in our targeted sectors, where macro trends support considerable long-term demand for infrastructure investment and expansion to ensure the provision of high-quality essential services. Our investment philosophy is guided by our commitment to strong alignment of interests with our investors and partners, and our heritage of responsible environmental, social and governance practices. We are proud to invest in critical infrastructure that contributes to economic growth, improves quality of life in our communities, and helps to reduce inequality.”

About InstarAGF Asset Management
InstarAGF, which makes direct investments and co-investments with like-minded investors and strategic partners, is an independent alternative asset management firm focused on North American middle-market opportunities in the infrastructure sector and other alternative real asset categories. InstarAGF’s growing footprint spans the United States and Canada with a portfolio that includes diversified, high quality infrastructure businesses delivering essential services and value to communities, partners and investors. InstarAGF is a signatory to the United Nations-supported Principles for Responsible Investment. For more information: www.InstarAGF.com