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Stanlib enters infrastructure, private equity sectors with R1.2bn fund

13th February 2015

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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Financial services group Stanlib aims to channel the bulk of a R1.2-billion infrastructure equity fund into some of the infrastructure projects under way in South Africa, with a particular focus on renewable energy.

The fund, which will also inject capital into projects across sub-Saharan Africa, will invest in sectors requiring third-party capital for projects presenting an attractive combination of risk and return.

The ten-year closed-ended infrastructure fund was the company’s first foray into infra- structure and private equity, explained Stanlib CEO Seelan Gobalsamy, who added that this formed a part of the asset manager’s strategy to bolster its alternative investment capabilities.

“We provide that platform and believe that alternative investments will be playing an increasing role in most institutional investment portfolios,” he added.

While renewable energy is a key focus point of the fund, the group will also examine investment opportunities in water, power, transport, telecommunications and oil and gas infrastructure projects.

Stanlib is currently developing a second fund to focus on postconstruction and operational infrastructure assets.

The financial services provider said it closed fundraising after successfully raising more than R1-billion in total commitments, with around R800-million raised from local institutional investors since its first close in May 2013.

The group has already made investments accounting for more than half of the fund’s total commitments.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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