* Fund's targeted size is C$750 million
* Final closing of the fund expected by the end of 2016
March 2 (Reuters) - Canada's InstarAGF said on Wednesday its
flagship infrastructure fund had closed its first round of
fundraising with C$372 million ($277 million) in firm equity
commitments, roughly half the fund's eventual target size.
Toronto-based InstarAGF, an asset management joint venture
between Instar Group Inc and AGF Management Ltd AGFb.TO , had
said last September it planned to raise between C$400 million
and C$450 million in the first fundraising for the InstarAGF
Essential Infrastructure Fund.
The fund, which focuses on mid-sized infrastructure assets
in North America, said it attracted a high-quality group of
institutional and high net worth investors from Canada, Europe,
the United Kingdom and the United States.
Bond yields near historic lows and equity market volatility
have prompted many big investors in recent years to allocate
more capital to alternative assets such as infrastructure, real
estate, private equity and hedge funds.
About C$135 million of the capital raised by InstarAGF has
already been committed to an investment in the passenger
terminal at Billy Bishop Toronto City Airport and a 30 megawatt
wind power development project in British Columbia.
InstarAGF said it now expects to achieve the final closing
of the fund, which has a targeted size of C$750 million, by the
end of 2016.
($1 = 1.3418 Canadian dollars)