Aberdeen Standard in $177m infrastructure fund US IPO

Aberdeen Standard Investments (ASI) said on Thursday that shares of its new US listed closed-end fund, Aberdeen Standard Global Infrastructure Income Fund (NYSE: ASGI), have started trading.

The fund raised $177 million — 8,850,000 common shares at $20 per share.

“In addition, the fund has granted the underwriters a 45-day option to purchase up to an additional 1,327,500 common shares at the public offering price to cover overallotments, if any,” said Aberdeen Standard.

“If the underwriters exercise that option in full, the fund will have raised $203,550,000.”

Aberdeen Standard said the fund will actively invest in public and private infrastructure equity investments around the world “making it distinct from any currently available ETF or open-ended mutual fund in the United States.”

The new fund will join Aberdeen Standard’s existing range of 10 US listed closed-end funds and two sub-advised US listed closed-end funds with $4.9 billion of assets.

These funds sit alongside the firm’s 24 UK listed closed-end funds and one Canada listed closed-end fund with a combined $13 billion of assets.

Aberdeen Standard is the sixth-largest manager of listed closed-end funds globally measured by assets under management.

Aberdeen Standard manages $644.5 billion of assets worldwide and is the asset management business of Edinburgh-based Standard Life Aberdeen plc.

Alan Goodson, Aberdeen Standard Investments Head of Product & Client Solutions for Americas, said: “Private infrastructure investment is generally reserved for institutional investors so we are pleased to be able to offer the opportunity to access ASI’s strategy in the asset class to a wider range of investors with the launch of this new closed-end fund.

“ASI believes now is an excellent time to be investing in infrastructure as governments around the world are looking to infrastructure investment as a way to stimulate their economies coming out of the COVID-19 pandemic.

“The World Economic Forum estimates that there is already a USD $18 trillion shortfall in infrastructure investment globally. If we stand any chance of filling that gap then we need to find new ways of releasing the necessary capital.” 

The fund will typically invest in assets across communications, utilities, transport, energy and social.

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