InstarAGF Essential Infrastructure final closes at $740M

InstarAGF Asset Management Inc. has held fourth and final close for its inaugural fund, InstarAGF Essential Infrastructure Fund, securing $740 million in aggregate equity commitments from institutional and high net worth investors from Canada, Europe, the United Kingdom and United States.

InstarAGF Essential Infrastructure Fund includes InstarAGF Essential Infrastructure LP and parallel fund InstarAGF Essential Infrastructure AIE LP and InstarAGF Essential Infrastructure (USP) LP.

“We are honoured to partner with an exceptional, diverse group of investors in Canada and internationally in raising three-quarters of a billion dollars to invest in middle-market, North American infrastructure that delivers stable income and builds long-term value,” said Gregory Smith, President & CEO of InstarAGF. “We are focused on helping communities and governments to renew, build and modernize the critical infrastructure that underpins our economy and quality of life while generating an attractive total return for our investors.”

Approximately 30% of the capital raised by the Fund has already been committed to three investments: an interest in the passenger terminal at Billy Bishop Toronto City Airport, a vital transportation hub for the city of Toronto and surrounding region; a 30-megawatt wind power facility in British Columbia’s Okanagan region; and an interest in Steel Reef Infrastructure Corp., a Canadian midstream energy services company that operates in top-quartile basins in Western Canada.

“The successful closing of this first-time infrastructure fund validates our investment and entrance into the alternatives space and further endorses InstarAGF’s expertise and value proposition for investors,” said Blake C. Goldring, Chairman and Chief Executive Officer of AGF. “With InstarAGF, we have established a strong platform through which to offer our clients distinctive alternative investment products that provide downside risk protection and long-term capital growth.”

InstarAGF Essential Infrastructure Fund focuses on energy, utilities, civil and social 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 expertise and ability to add value to the asset creates the potential for capital appreciation.

“Investors are increasingly embracing infrastructure investments at a time when communities and governments in Canada and the United States are urgently seeking innovative solutions and financing approaches to address burgeoning infrastructure deficits and position for the future. InstarAGF is building a robust investment pipeline based on our cross-sectoral expertise and ability to foster long-term relationships and create value for stakeholders. All of InstarAGF’s employees have invested in the Fund, which closely aligns our team with our investors and partners and makes our contribution to infrastructure renewal in North America deeply personally meaningful,” said Smith.

photo credit: Marin Mohanadas via pixabay

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.