Melbourne-based fund manager Westbourne Capital has signed an agreement with Japan's Mitsui & Co to establish a US$300 million infrastructure debt fund exclusively for Japanese institutional investors.

Westbourne has signed a memorandum of understanding (MOU) with Mitsui's Japan Alternative Investment Co Ltd (JAI) to launch the fund during this year 2014. The fund will have a target of $300 million and Mitsui will assist with the introduction of Japanese institutions and their relationship management. Westbourne will be the investment adviser and manager.

The Mitsui alliance is part of Westbourne's aim to raise a further $1.5 billion in new commitments of capital.

Westbourne Capital is a specialist investment manager solely focused on investing in infrastructure debt globally. It was established in 2008 by former Hastings Funds Management executives. It has since invested over $2 billion in infrastructure debt in 30 investments globally.

The firm is focused on debt investment in core infrastructure assets located in OECD countries. Industry sectors of interest include airports, toll roads, ports, rail, gas transmission and distribution, electricity generation, transmission and distribution, water and wastewater, waste management, oil and gas storage and telecommunications infrastructure.

Westbourne Capital offers the full range of infrastructure debt securities including senior and subordinated debt.