Keppel Capital lands US$600M of infrastructure-focused SMAs

U.S. one-dollar currency notes; taken September 2018.U.S. one-dollar currency notes; taken September 2018.

Keppel Capital has secured US$600 million of separate managed accounts (SMAs) from international financial institutions, the asset management arm of Keppel Corp. said in a filing to SGX Tuesday.

The SMAs are focussed on infrastructure projects with long-term utility-like contracted cash flows, Keppel Capital said, citing investor interest in infrastructure as an attractive asset class with less susceptibility to major economic cycles and short-term fluctuations.

“Securing the Separate Managed Accounts from reputable institutional investors is a testament to Keppel’s value proposition of creating
attractive investment opportunities. The recent volatility in the global markets underscore the demand for real assets with long term stable cash flows,” Christina Tan, CEO of Keppel Capital, said in the statement.

“By leveraging the Keppel Group’s collective strengths, expertise and network in renewables, decarbonisation solutions, energy and infrastructure, which are Keppel’s focus areas under the Group’s Vision 2030, we provide investors bespoke access to these sectors,” she said.

Tan noted Keppel Capital can collaborate with other parts of Keppel Group, including the fund management capabilities and investor network from Keppel Asia Infrastructure Fund and Keppel Infrastructure Fund Management, as well as the group’s project management and asset management units.

Keppel Capital had around S$37 billion in assets under management at end-2020, with a portfolio including real estate, infrastructure and data centers.