InstarAGF Asset Management Inc. and AGF Management Limited have announced the InstarAGF Essential Infrastructure Fund has raised approximately CAD522 million (CAD386 million) in aggregate equity commitments from institutional and high net worth investors.

It represents approximately 70% of the Fund’s targeted CAD750 million (US$555 million) size.

The fund seeks to acquire 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.

Approximately CAD210 million, or 40%, 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 development project in British Columbia that is expected to start operating in the first quarter of 2017; and an interest in Steel Reef Infrastructure Corp.,
• a Canadian midstream energy services company that operates in top-quartile basins in Western Canada.

InstarAGF expects to complete the final closing of the fund, which has a targeted size of CAD750 million, in early 2017.

Gregory Smith, President and Chief Executive Officer of InstarAGF, said:

“We deeply appreciate the support we have received from an exceptional and diverse group of investors in Canada and internationally. 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.”

Blake C. Goldring, Chairman and Chief Executive Officer of AGF, stated:

“The team’s success in raising and deploying capital to high quality infrastructure investments clearly validates InstarAGF’s expertise and value proposition. For institutional, high net worth and retail clients globally, InstarAGF broadens our offering of innovative products that deliver downside risk protection and long-term capital growth.”