Marubeni Corporation, Mizuho Bank, Ltd., and Asset Management One Co., Ltd. have announced an agreement regarding the establishment of a fund specialized for equity investment in overseas infrastructure assets, as well as a managing company for the fund, targeting institutional investors both in Japan and abroad.

The three companies are all contributing to the establishment of MM Capital Partners Corporation (MMCP) as the management company for the “MM Capital Infrastructure Fund 1”, which will make equity investments in private-sector led overseas infrastructure assets and build a portfolio of assets. MMCP will be responsible for management and operation of the fund.

The fund will make investments in the transportation and energy infrastructure sectors, and will focus on assets that are already operational and generating steady cash flows (brown-field), particularly those located in member countries of the Organization for Economic Co-operation and Development (OECD).

With this strategy, the fund will aim to mitigate risk factors like country risk and project risk, maintain income gain during its term, and provide long-term and stable investment opportunities to institutional investors like financial institutions and pension funds. Marubeni and Mizuho will invest in the fund, and going forward the goal is to broadly invite number of investors to expand the capital managed by the Fund to JPY50 billion (US$458.8 million).