Fundraising Milestone 🌍📈💰
Ninety One’s South Africa Infrastructure Credit Fund has reached a major fundraising milestone, with assets under management (AUM) crossing ZAR 2 billion since its launch. This reflects a strong institutional investor appetite for high-quality infrastructure debt opportunities. 🌍📈💰
Strategic Origin & Ambitious Goals 🚀🏗️📊
Originating in a pilot phase with just ZAR 100 million in early backing, the fund officially launched in March 2024 aiming to raise up to ZAR 15 billion from institutional investors. 🚀🏗️📊
Investment Focus & Portfolio Composition 🔋💼🌱
- Over 80% of the capital is directed toward South African projects spanning both public and private sectors—including water, energy, transport, digital infrastructure, and more.
- Notable investments include:
- Lesotho Highlands Water Project (part of the Vaal River Transfer Scheme), securing water for approximately 33% of South Africa’s population.
- De Aar Wind Farm, providing approximately 100 MW of clean energy to 85,000 households.
- Teraco, a leading data centre provider.
Liquidity & Structure Advantages 🔄💳🏦
Being an open-ended fund, it offers quarterly liquidity, affording flexibility uncommon in infrastructure investing. The fund is managed by a platform of over 40 professionals with a 17-year track record in private credit. 🔄💳🏦
Why It Matters: The South African Infrastructure Opportunity 🌍🛠️📈
- Funding a National Gap
South Africa faces a substantial infrastructure funding shortfall estimated at around ZAR 4.2 trillion. This fund channels private debt capital into vital development projects, helping bridge that gap. 🌉📊💸 - Investor Appeal: Stability with Impact
Infrastructure debt offers steady, inflation-linked returns and diversifies portfolios with typically lower risk profiles. 💼📉📈 - Strategic Exposure with ESG Impact
Projects supported—like clean energy and water security—offer both financial returns and tangible development impact, aligning with sustainability and ESG goals. 🌱🔌💧 - Institutional Confidence
The rapid scaling from pilot phase to ZAR 2 billion AUM indicates strong confidence in the fund’s strategy, team, and originations. 🏦🧩📈
Summary Table 📋📊🔎
| Aspect | Details |
|---|---|
| Current AUM | ZAR 2 billion (target: up to ZAR 15 billion) |
| Launch | February–March 2024 (pilot phase included) |
| Investment Focus | Infrastructure debt: water, energy, digital, transport |
| Notable Projects | Lesotho Highlands Water Project, De Aar Wind Farm, Teraco |
| Liquidity | Quarterly withdrawals |
| Manager Experience | 40+ professionals; 17-year private credit track |
| Strategic Relevance | Addresses ZAR 4.2 trillion infrastructure gap; ESG alignment |
Outlook 🔮📈🌱
- Momentum continues: With ZAR 2 billion secured, the fund is well-positioned to pursue its ZAR 15 billion target, backed by a growing pipeline of high-quality infrastructure projects.
- Investor value: Combining attractive risk-adjusted returns with sustainability impact positions the fund as a compelling vehicle for institutional capital.
- Economic impact: Beyond financial returns, the fund supports essential services—water, energy, connectivity—that underpin South Africa’s growth and resilience. 🌍🏗️📡
Let me know if you’d like a deep dive into the fund’s financial structure, modelling assumptions, projected IRR or NPV scenarios, or comparable infrastructure debt vehicles in the region! 📉🔍📊
Finteam 