Stonebridge Financial Corporation has announced the launch of their Debt Fund II L.P. with initial capital commitments totalling approximately $201.5 million.
Inspired by the success of their first Fund, Fund II will be open-ended for a period of up to 10 years. The initial capital commitment is provided by a number of Canadian institutional investors including pension funds, insurance companies and the Business Development Bank of Canada. Fund II, like its predecessor, has an investment objective to invest in long term, fixed rate, senior debt financings for the purpose of the construction, operation, ownership or maintenance of infrastructure assets that include, but are not limited to social infrastructure: which includes, among other things, hospitals; long-term care facilities; schools and universities; correctional facilities; courthouses; subsidized housing; community centres and recreational facilities; roads; bridges; airports; mass transit and water and waste management systems. The Fund will also include energy infrastructure which includes, among other things: public or private producers of non-merchant based energy; pipelines; transmission and distribution lines.
“Stonebridge believes that private infrastructure debt is an ideal asset class for providing institutional investors with incremental yield, portfolio diversification, credit enhancement and liability matching characteristics not otherwise available in the public fixed income market,” says Robert Colliver, Co-CEO and partner of Stonebridge.
“Our participation in this second Fund will increase senior debt availability for entrepreneurs developing smaller projects within the Canadian infrastructure ecosystem,” says Yvon Jeghers, Senior Vice President, Corporate Financing at BDC.
Stonebridge also manages Stonebridge Infrastructure Debt Fund I L.P., a closed-end fund established with the support of PPP Canada Inc. in 2012. With total capital commitments of $201.5 million, Fund I was fully invested in less than 15 months in 12 unique social infrastructure and energy debt transactions.