Aberdeen Asset Management has launched and obtained seeding for its fifth infrastructure fund. The Aberdeen Global Infrastructure Partners II LP has received commitments from a range of Asian institutional investors taking overall investor commitments to infrastructure, across the platform, to $2.3bn.
The new fund will invest in social and economic infrastructure projects underpinned by long term secure government contracts characterised by stable and partially inflation linked cash flows. It will invest in all major sectors of social and economic infrastructure including, but not limited to, health, education, social housing, government accommodation, roads, bridges, rail, rolling stock and waste management.
Aberdeen has a bias towards greenfield infrastructure and is focused on geographic areas where we see a level of political stability and visibility on government infrastructure procurement policy. Outside Europe, the potential for investment in infrastructure is very promising, with Australia still proving to be one of the most active markets for PPP (Public Private Partnership) investors. Activity in North America is on the increase although this comes with the added complexities of a state by state procurement regime and little input from central government.
However, the company clarified that this is not a barrier for investors but does require a more pro-active approach to securing mandates on the ground.
The 24-team is led by Gershon Cohen. It already invests in over 90 projects around the world with team members based locally to oversee investments and identify new opportunities, Aberdeen AM said.
Gershon Cohen, head of Infrastructure Funds at Aberdeen, comments: “We’re delighted with the launch of our fifth infrastructure fund. We will employ the same investment approach as we do for our other mandates. Our focus is on undertaking rigorous due diligence before investing; leveraging off the numerous deep relationships we have built with industry partners across different geographies and sectors and being actively involved with projects.”