Canada's small infrastructure funds are happily snapping up the scraps left by the market's biggest players.
Northleaf Capital Partners last week closed the second fund in its $2.5 billion program targeting long-term projects like health care, renewable energy and transportation in developed countries around the world. The Canadian-based fund targets equity investments of $150 million to $200 million with a return in the 10% range on a project.
Northleaf's projects are dwarfed by those of some of the bigger players. Canada Pension Plan Investment Board targets infrastructure investments of C$500 million to C$2 billion with its C$22 billion of infrastructure assets under management, according to board financial statements. And Brookfield Infrastructure Partners LP raised $14 billion last year in what was at the time the largest private infrastructure fund ever raised in the industry.
“Where we see a real opportunity is to continue to play in a very attractive part of the market that's below the radar screen of where the biggest players operate,” Stuart Waugh, Northleaf's managing partner, said by phone from Toronto.