African Infrastructure Investment Managers (AIIM) has successfully completed a capital raise of R5.5 billion ($370 million) for its infrastructure fund, which aims to boost access to clean energy.
A statement issued by the investment manager from its office in Cape Town, South Africa, revealed that the capital raise exceeded the initial R4.5-billion ($301 million) target by 20 percent, taking the size of its open-ended fund to more than R22 billion ($1.475 billion).
The new capital commitments were secured from 19 key South African institutional and pension fund investors, with two-thirds of the capital being committed by new investors.
The Vuyo Ntoi-led firm is expected to deploy the $370 million in capital under its Infrastructural, Developmental and Environmental Assets Managed (IDEAS) Fund, a policy-based linked investment product of Old Mutual Group.
The completion of the fundraising exercise will provide AIIM with sufficient capital to support the deployment of assets across the power, digital, infrastructure and transport sectors over the next three years, underpinned by long-term economic and environmental sustainability goals.
Ntoi, AIIM co-managing director, said the market has reached an inflection point, with public policy support catalysing healthy deal flow and increasing private-sector investor appetite.
He concluded that the strong support from existing and new investors is indicative of overall investor confidence in the AIIM and IDEAS investment mandate, as the fund continues to deliver long-term infrastructure for South Africa and the region.
Sean Friend, CEO of AIIM’s flagship SADC Infrastructure Fund, gave an investment case for the new capital commitments. He explained that the COVID-19 pandemic reinforced the strength of infrastructure as an attractive long-term asset class in the face of market volatility.
He also noted that all AIIM portfolio assets remained operational in this period despite disruptions from the pandemic, and that this led the firm’s infrastructure investment fund to outperform most other asset classes.
Since AIIM was founded by two market leaders, Macquarie and Old Mutual, it has evolved over the past 20 years to become one of Africa’s leading infrastructure investment managers.
The firm’s operations span 19 different countries across East, West and Southern Africa, with established local offices in South Africa, Nigeria, Kenya and Cote d’Ivoire.
Through its investment team, AIIM has committed more than $2.1 billion in infrastructure-related investments across seven funds in over 56 assets across the power, telecommunications and transport sectors in East, West and Southern Africa.