First State Investments global fund in sixth funding round 

03 September 2019 - 10:38 am UTC

Australia's Colonial First State Global Asset Management (CFSGAM) will soon close a sixth funding round for its Global Diversified Infrastructure Fund (GDIF) to take it to around USD 3bn from about USD 2.4bn now, sources familiar with the situation said.

 

CLARIFICATION: This article was amended to show the number of new investors in the sixth fundraising round. 

 

Its Series 6 raising is targeting at least USD 500m, with a close likely in about a month, according to two sources familiar. GDIF raised USD 816m in its Series 5 raising, which concluded in January.

 

GDIF was relaunched in 2015 with an initial target of USD 3bn with investor approval required to go beyond that. It has a hard cap of no more than USD 5bn. It targets mid-sized investments in the utility and transport sectors.

 

GDIF raises further funds in consultation with its investors after First State has identified new assets to invest in.

 

GDIF has 46 investors in total, including 18 from Australia, 20 from North America and seven from Japan. Between six and eight new investors have been added in this series, the sources said.

 

The global fund's most recent investments include 100% of Patriot Rail and Ports, its first US acquisition, from Steel River Infrastructure Partners finalised on 26 August and AquaNet, a small water utility in Sydney that First State subsidiary Water Utilities Australia has bought from Jemena and Veolia.

 

Once these sales are added, GDIF will hold about 12 assets.

 

Another deal that could add another asset to the fund is ANZ Terminals agreeing in March to buy ASX-listed GrainCorp’s Australian Bulk Liquids Terminals business for AUD 350m (USD 243m). GDIF has a 22.9% stake in ANZ Terminals.

 

This deal is, however, subject to approval by Australia’s competition regulator, the Australian Competition and Consumer Commission, which is expected to hand down its decision in October.

 

A spokesperson for CFSGAM declined to comment.

 

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