RBC GAM infrastructure fund smashes fundraising targets

The new fund attracted a lot of attention from Canadian investors, raising over $600 million in commitments

RBC GAM infrastructure fund smashes fundraising targets
Steve Randall

A new global infrastructure fund from RBC Global Asset Management (RBC GAM) has exceeded its initial commitment targets.

Announcing the closing of the RBC Global Infrastructure Fund LP, the asset manager said it had raised more than $600 million from over 1,800 individual and institutional investors in Canada.

The fund was launched earlier this year and will provide qualified investors with access to an underlying portfolio of directly held infrastructure assets, with the aim of delivering attractive risk-adjusted returns.

Andrew Hay, head of global infrastructure investments at RBC GAM, will manage the fund and says that interest has been exceptional.

“Investors are looking for ways to access private infrastructure investments to diversify and enhance their portfolios,” he said.

Hay joined the firm in 2021 with more than 20 years of infrastructure experience, including a senior role at Canada's largest pension plan.

He is supported by a broad base of wealth management experts including RBC GAM’s Private Markets team, led by Michael Kitt.

"The positive response from clients is a testament to the benefits that accrue to investors from investing in private asset classes," said Kitt. "Having direct access to high quality private market assets has traditionally been a portfolio diversification advantage only the largest institutional investors have enjoyed."

Growing capabilities

RBC GAM has boosted its private markets capabilities in recent months including three flagship strategies - RBC Canadian Core Real Estate Fund, RBC Commercial Mortgage Fund, and the new RBC Global Infrastructure Fund.

Assets under management within the firm’s private markets platform totalled over $12 billion at March 31, 2023.