Washington, October 8, 2013—IFC
Asset Management Company, LLC (“AMC”), a wholly-owned subsidiary of the
International Finance Corporation (“IFC”), has today completed fundraising
for its infrastructure equity fund, with a total of $1.2 billion raised,
up from its target of $1 billion. The IFC Global Infrastructure Fund, LP
(the “Fund”) has received capital commitments from 11 investors, comprising
IFC and a Singapore sovereign wealth fund, GIC, as anchor investors, and
9 sovereign and pension fund investors from Asia, the Middle East, Europe
and North America.
The Fund's mandate is to make equity and equity-related investments alongside
IFC in a broad range of infrastructure sectors in developing countries.
It will be managed by an AMC team based in Washington, D.C. and Singapore.
The aim is to create a well-balanced portfolio diversified by region and
by sub-sector, with investments in sectors that include power, transport,
utilities and telecommunications. By leveraging IFC’s investment expertise,
distinct transaction pipeline, and organizational networks, the Fund offers
institutional investors a cost-efficient platform to make direct infrastructure
investments in markets where barriers to entry and transaction costs for
investors can be a significant deterrent.
At the same time, the Fund's existence allows IFC to expand its activities
in infrastructure, a critical sector for its member countries and so often
the bottleneck for achieving an enhanced growth trajectory. It supports
the new World Bank Group strategy that calls for greater mobilization of
the private sector as a central force in promoting economic growth and
“Poor infrastructure inhibits growth, improved infrastructure accelerates
growth,” said Gavin Wilson, CEO of IFC Asset Management Company. “While
infrastructure investing has grown in developed markets, it is still largely
an orphaned asset class in many emerging regions. What is missing
is long-term risk capital that understands where the growth opportunities
lie and recognizes the need for well-structured investments that address
the real risks involved, not simply the perceptions of risk. The
Fund will help to fill this gap, taking advantage of the risk mismatch
and benefiting from IFC’s extensive track record and expertise in such
Infrastructure is an area in which the private sector can have a substantial
positive impact, providing capital, expertise and operating know-how so
that essential services can be supplied to large numbers of people efficiently,
affordably and profitably. This is IFC’s focus: supporting private infrastructure
projects whose innovative, high impact business models can be widely replicated.
In FY2013 IFC’s new investment commitments in infrastructure sectors totaled
The level of investor interest in the Fund highlights IFC's catalytic role
as a key partner for other investors as well as being a leading direct
investor in private-sector infrastructure in developing countries. IFC
has invested in infrastructure for over 50 years, with a dedicated group
of 300 professionals globally, that have accumulated unparalleled experience
in developing, investing and managing a diversified portfolio of infrastructure
investments. IFC’s committed portfolio in infrastructure sectors totaled
more than $11 billion as of the end of FY2013.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise and
influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our new investment commitments climbed to an all-time high of
nearly $25 billion, leveraging the power of the private sector to create
jobs and tackle the world’s most pressing development challenges. For
more information, visit www.ifc.org.
About IFC Asset Management Company
A wholly-owned subsidiary of IFC, IFC Asset Management Company, LLC is
IFC's fund management arm. AMC invests third-party capital alongside IFC,
enabling outside investors to benefit from IFC’s expertise in achieving
strong returns, as well as positive development impact, in the countries
in which it invests. AMC manages over $6 billion of capital across six
investment funds, including one fund of funds.
About the IFC Global Infrastructure Fund
The IFC Global Infrastructure Fund, LP invests alongside IFC in equity
and equity-related investments in infrastructure projects and companies
in developing countries.