Alpha Investment Partners to raise over $1.5bn

The Singapore-based fund manager is imminently coming to market with two private equity real estate funds, including the third in its series of closed-ended, value-added vehicles.  

Alpha Investment Partners (AIP), the real estate fund management platform of the Singapore-based group Keppel Corporation, is plotting the launch of two private equity real estate funds with a combined capital raising target of over $1.5 billion.

The firm is planning to imminently start marketing for Alpha Asia Macro Trends Fund (AAMTF) III, the third in the series of closed-ended value-added vehicles that are typically invested in sectors that can tap macroeconomic and social trends such as urbanisation and consumerism. The dollar-denominated fund, to be launched within the first quarter, will be targeting to raise more than $1 billion.

The firm had the same $1 billion target for AAMTF II as well, but the fund went on to raise $1.65 billion in the final close in 2013.

Additionally, firm is also bringing to market its first data centre fund with a target of around $500 million.

The news of the mega fund launches comes less than a month after Keppel announced a merger of all its asset management businesses under one subsidiary called Keppel Capital, understandably to expand its capital platform. AIP was among the merged divisions along with Keppel Infrastructure Trust, Keppel DC REIT, and the Keppel REIT.

AIP confirmed to PERE the news of the fund launches first published on IPE Real Estate.

Christina Tan, managing director of Alpha Investment Partners and chief executive officer-designate of Keppel Capital, said the data centre fund would be an interesting investment vehicle for institutional investors which are looking to invest in different asset classes.

“Data creation and storage needs have been growing exponentially at 48 percent compounded annual growth rate a year, in line with an explosion in the use of mobile phones and other developments such as government regulation of Internet security and cloud computing,” she told PERE. “The planned data centre fund seeks to capitalise on the growth trend in internet data traffic, regulation and cloud computing which is driving demand for data centres.”

Meanwhile for AAMTF III, the fund manager is targeting sovereign wealth funds, pensions, endowments and insurance companies for commitments. The fund’s investment mandate would be similar to the predecessor funds in the series in that it would be invested in Singapore, Hong Kong, Seoul, Tokyo, Shanghai, Beijing and Taipei. For the first time ever however, Australia, particularly Sydney and Melbourne, will also be a target investment destination, Tan said. IRRs in the mid-teens are expected to be generated.