InstarAGF Asset Management Inc. and AGF Management Ltd., both of Toronto, announced on Thursday that InstarAGF Essential Infrastructure Fund has raised approximately 70% of its targeted size.
A total of approximately $522 million in aggregate equity commitments from institutional and high net-worth investors has been raised of the desired target of $750 million.
The fund seeks to acquire energy, utilities, civil and social infrastructure assets that exhibit sustainable downside protection.
“We deeply appreciate the support we have received from an exceptional and diverse group of investors in Canada and internationally,” says Gregory Smith, president and CEO of InstarAGF, in a statement. “InstarAGF’s middle-market, North American focus is distinctive and positions us to deliver stable income and long-term value to our investors as we help communities and partners to renew, build and modernize their critical infrastructure.”
Approximately $210 million of the capital that the fund has raised has already been committed to three investments:
> An interest in the passenger terminal at Billy Bishop Toronto City Airport, which is a transportation hub for the city of Toronto and the surrounding region.
> A 30-megawatt wind power development project in British Columbia that is expected to start operating in the first quarter of 2017.
> An interest in Calgary-based Steel Reef Infrastructure Corp., which is a Canadian midstream energy services company.
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