22 July 2024
Alexforbes
Alex forbes Investments is launching the AF Infrastructure Impact Fund-of-Funds, providing clients with exposure to an asset class offering long-term inflation-beating returns while addressing South Africa’s critical infrastructure needs.
The fund is set to launch in July 2024, with an initial close date targeted towards the end of 2024.
The AF Infrastructure Impact Fund-of-Funds represents a significant addition to the organisation’s over two-decade-long legacy in private market investments, currently valued at R11 billion. It will operate as a multi-managed, multi-strategy fund-of-funds, offering investors a diversified portfolio strategically focused on infrastructure opportunities that promise financial returns alongside socio-economic impact.
Targeting a fund size of R5 billion, investments will span crucial sectors for South Africa’s economic and social development, including energy, transportation and public utilities. Projects will encompass renewable energy (such as solar and wind) and essential infrastructure (including roads, railways and public health facilities). This will contribute to bridging the infrastructure gap and supporting the country’s growth trajectory.
Moreover, the fund aims to advance inclusivity and competitiveness in the asset management industry, providing access to premier Black-owned/managed infrastructure portfolios. This aligns with Alexforbes Investments’ commitment to transformation and economic empowerment.
The Alexforbes South Africa Private Markets portfolio, which includes investments from several of Alexforbes Investments’ portfolios, has approved a R1bn allocation to the new fund.
The AF Infrastructure Impact Fund-of-Funds responds to growing interest in infrastructure investments, following National Treasury’s announcement permitting South African retirement funds to invest up to 45% in infrastructure.
The fund’s classic closed-end partnership structure appeals to long-term institutional investors. It offers the opportunity to diversify investment strategies and tap into the potential rewards of infrastructure investments.
AF Infrastructure Impact GP (Pty) Ltd will serve as the general partner, overseeing strategic direction, while Alexander Forbes Investment Administration (Pty) Ltd will manage the investments. Alexforbes has a dedicated investment team focused on managing alternative asset classes, who will be responsible for the management of the fund.
Alexforbes Investments bring substantial depth of experience, both overall and specifically in private market investments, positioning the AF Infrastructure Impact Fund-of-Funds as a compelling opportunity for investors seeking sustainable returns.
Infrastructure opportunities in South Africa are vast and critical to national development. The private sector plays a pivotal role in rebuilding and enhancing economic, social and IT infrastructure. By directing investments into these critical areas, the Fund is expected to foster economic growth, drive job creation and enhance quality of life across South Africa. Investors can anticipate sustainable returns from participating in the Fund.
Lebo Thubisi, deputy chief investment officer at Alexforbes Investments, stated, ‘The AF Infrastructure Impact Fund-of-Funds represents more than just an investment opportunity; it’s a step towards a future that resonates with growth, inclusivity, and sustainability.’
‘This initiative marks a significant milestone in our commitment to driving positive change and building a future for our nation that we can all connect with,’ concludes Thubisi.