Marubeni and Mizuho launch MM Capital Infrastructure Fund I

Marubeni Corporation, Mizuho Corporation, and Asset Management One Co., Ltd have reached an agreement regarding the establishment of a fund specialized for equity investment in overseas infrastructure assets, as well as a managing company for the fund, targeting institutional investors both in Japan and abroad. 

The three companies have established MM Capital Partners Corporation (MMCP) as the management company for the “MM Capital Infrastructure Fund 1”, with the objectives to make equity investments in private-sector led overseas infrastructure assets and build a portfolio of assets. MMCP will be responsible for the management and operation of the Fund.

The Fund will make investments within the transportation infrastructure sector and energy infrastructure sector and will focus on assets that have already been operational and is generating a steady cash flow (brown-field), particularly located within member countries of the Organization for Economic Co-operation and Development (OECD). With this strategy, the fund will aim to mitigate risk factors like country risk and project risk, maintain income gain during the term, and provide long-term and stable investment opportunities to institutional investors like financial institutions and pension funds. Marubeni and Mizuho will invest in the Fund, and going forward the goal is to broadly invite a number of investors to expand the capital managed by the Fund to JPY50 billion (US$448 million). 

Marubeni, while expecting to create synergies in the Fund and utilizing its vast experience in overseas infrastructure investment, intends to contribute to the development and expansion of infrastructure worldwide by proactively engaging in overseas infrastructure investment projects,
including development type project (green-field).

Mizuho will, through organization and management of the Fund, strengthen equity investment and other infrastructure business-related initiatives, and further improve their presence in related fields and industries. 

Marubeni holds 90% shares in the Fund with Mizuho and AM-One of 5% interest, respectively.