Stonebridge Financial Corporation (“Stonebridge”) is very pleased to announce the launch of Stonebridge Infrastructure Debt Fund II L.P. (“Fund II”) with initial capital commitments totaling approximately $201.5 million.
Inspired by the overwhelming success of our 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, universities, correctional facilities, courthouses, subsidized housing, community centres, recreational facilities, roads, bridges, airports, mass transit and water and waste management systems, and;
Energy infrastructure: which includes, among other things, public or private producers of non-merchant based energy, pipelines, transmission and distribution lines.
“Stonebridge is very proud to be launching Fund II to again enable Stonebridge, as fund manager, to leverage its market expertise, experience and relationships to generate high quality, predictable investment cash flow and returns that are well suited for long-term, liability-driven investors. 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.” said 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,” said Yvon Jeghers, Senior Vice President, Corporate Financing at BDC.
“La Capitale Financial Group Inc. is pleased to partner with Stonebridge and participate in its second debt fund in Canadian infrastructure”, said Mr. Michel Lévesque, Vice-President, Investments. “With over 15 years experience in this market, Stonebridge is for us a partner of choice in our search for quality investment opportunities.”
Stonebridge also manages Stonebridge Infrastructure Debt Fund I L.P. (“Fund I”), 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.
Stonebridge is an independent financial services company with proven expertise in arranging and structuring debt financings for syndication in the Canadian institutional marketplace, with a focus on the energy and social infrastructure sectors. Stonebridge was founded in 1998 with the support of three major Canadian life insurance companies, with a view to establishing a reliable origination vehicle for high quality private debt investment opportunities and portfolio administrative services. Today, those institutions remain as minority preferred shareholders of Stonebridge and continue to be key loan syndication relationships.