Asset manager, Allco Finance Group (AFG) rose as much as 6% to $6.11 in early morning trade on Monday after the company said it had raised $200 million for its globally diversified transport and infrastructure fund ahead of schedule.
The fund, Allco Global Transport and Infrastructure Fund, (Allco GTI) received the funding from an unnamed ‘large Australian institutional investor'.
"Allco GTI is an unlisted, wholesale fund that will invest in aviation, shipping, rail and specialised infrastructure assets that will seek to provide reliable absolute returns with a long term cash flow component," Allco said in a statement.
"Allco is targeting total capital commitments of $350 – $450 million from a limited number of investors," it added.
Assets include a share of five European wind farms, direct investments in three aircraft, and a share in a portfolio of 27 ships, which were originally on Allco's balance sheet.
The Sydney based business hopes the fund will appeal investors considering Allco's experience in transportation origination, financing and asset management. Allco says it will offer investors access to Allco's proven and proprietary deal flow in its core asset classes.
It said the first close is expected to occur in January 2008 with a subsequent and final close expected to occur later in 2008.
The company was founded in 1979 and listed on the Australian Stock Exchange in 2001. Earlier in the year stock in AFG hit an all time high of $13.24 only to slowly fall to the current level trading around $6 mark.
Shares were trading 34 cents up at $6.10 as at 11.17AM AEST.
