RBC’s Infrastructure Fund records over $600m

RBC Global Asset Management Inc. (RBC GAM Inc.) has announced the successful first closing of the RBC Global Infrastructure Fund LP. The fund has managed to raise over $600 million in commitments from more than 1,800 Canadian investors, surpassing its initial targets. This achievement reflects the strong interest from both institutional and individual investors in accessing infrastructure assets for attractive risk-adjusted returns.

Launched earlier this year by RBC GAM Inc., the Fund provides qualified investors with an opportunity to invest in a diverse portfolio of directly held infrastructure assets. The aim is to deliver favourable risk-adjusted returns. Over the next 6-18 months, the fund’s manager, Andrew Hay, intends to deploy the currently committed capital in core/core+ infrastructure assets across various sectors primarily in developed market economies. The Fund remains open-ended, enabling long-term growth and value creation.

Andrew Hay, who has over 20 years of infrastructure experience, including a senior role at Canada’s largest pension plan, leads the management of the Fund. He is supported by the experienced RBC GAM Private Markets team, led by Michael Kitt. By leveraging the extensive investment expertise of RBC Global Asset Management, the Fund is well-positioned to deliver value to its investors.

Hay expressed gratitude for the overwhelming interest shown by clients in the RBC Global Infrastructure Fund LP, highlighting investors’ desire to diversify and enhance their portfolios through private infrastructure investments. The Fund’s launch aligns with RBC GAM Inc.’s strategic expansion of its private markets capabilities. With the recent addition of the RBC Canadian Core Real Estate Fund and RBC Commercial Mortgage Fund, the private markets platform has experienced substantial growth, managing assets worth over $12 billion as of March 31, 2023.

Michael Kitt emphasized the advantages of investing in private asset classes, noting that access to such high-quality opportunities has traditionally been limited to large institutional investors. However, with the RBC GAM private markets strategies, a wider range of clients can now access these valuable investment segments alongside knowledgeable and aligned partners. Following the deployment of the initial committed capital, a second subscription period is expected to commence, offering qualified individual and institutional investors further opportunities to participate in the Fund.