POWERED BY MOMENTUM MEDIA
Australian Ethical teams up with specialist manager for infrastructure debt fund
Ethical asset manager Australian Ethical has launched an infrastructure debt fund in association with specialist Infradebt.
The Australian Ethical Infrastructure Debt Fund will provide capital for key Australian projects spanning renewable energy, social infrastructure, and property projects with a social or environmental benefit.
Chief investment officer Ludovic Theau said the fund will be at the forefront of capital deployment into Australia’s renewable energy transition. This includes loans to the Yarranlea Solar Farm, to implement solar and battery projects in remote communities, and stand-alone battery projects such as the Genex Bouldercombe in Queensland.
Infrastructure debt specialist Infradebt has already funded more than 40 renewables projects and said infrastructure debt typically offered stable and predictable cash flow and diversification as well as a way to hedge market volatility and inflation.
“We estimate that debt capital will provide 50–60 per cent of the total capital expenditure that’s required to meet Australia’s renewable energy transition targets,” he said.
“Given Australia is aiming to increase its renewable energy generation from 39 per cent today to 82 per cent by 2030, Australian Ethical considers its expansion into infrastructure debt as an important growth opportunity that will serve a dual purpose – of delivering good risk-adjusted returns and contributes towards meeting these targets.
“This partnership with Infradebt, also a leader in its field, allows us to bolster our investment capabilities by bringing in-depth expertise across new asset classes.”
Infradebt investment director and co-founder Alex Ramsey said: “We’re pleased to be partnering with Australian Ethical on a product that will be integral to building Australia’s green transition. The energy transition is of paramount importance to our community, it will be complicated and challenging, and the fund will allow investors to access the requisite investment capability to participate and make a meaningful contribution.”
Announcing its quarterly results last month, the firm said its funds under management are approaching $10 billion after seeing net flows of $145 million in the three months to 31 December.
FUM was $9.6 billion, up by 5 per cent from $9.2 billion in the previous quarter. This was divided between $2 billion in managed funds and $7.6 billion in superannuation.
However, managed funds saw net outflows of $7 million, which the firm attributed to “cautious investor sentiment relating to broader market volatility”.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
Economic growth was weaker than expected, once again highlighting an economy largely sustained by population growth and government spending.
In this latest edition, Anna Shelley, CIO at AMP, shares the fund’s approach to current market conditions and where it continues to uncover key opportunities.
The mega fund has announced a $2.2 billion investment in a leading data centre platform, bringing its global real assets portfolio to nearly $60 billion.
In this latest edition, Australian Retirement Trust’s head of global real assets Michael Weaver explains the fund’s approach to finding new opportunities as it surpasses $300 billion in funds under management.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
