ENERGY & INFRASTRUCTURE
AAM and Wilshire Launch Infrastructure Fund with $150m Sun Life Seed Investment
The evergreen interval fund, sub-advised by Wilshire, targets small- and middle-market infrastructure opportunities with a $5,000 minimum for individual investors.
Advisors Asset Management (AAM) and Wilshire have launched the AAM Wilshire Infrastructure Fund, giving individual investors access to a private asset class historically available primarily to large institutions. Sun Life Financial Inc., a global financial services organisation with approximately $1.2 trillion in assets under management, has committed $150 million in seed capital to the fund, which trades under tickers AAWIX, AAWDX and AAWSX.
Targeting small- and middle-market infrastructure
The fund is designed to provide exposure to global infrastructure assets tied to long-term trends including digitalisation, transportation, the energy transition and social infrastructure. It focuses on small- and middle-market opportunities, defined as transaction sizes of approximately $100 million to $2 billion, where the firms say specialised sourcing and reduced competition may enhance return potential. The fund invests across infrastructure funds, secondaries and co-investments. Cliff Corso, Chief Executive and President of AAM, said: "Private infrastructure has delivered compelling risk-adjusted returns for institutional investors for decades, yet access within the broader wealth channel has remained limited."
Structured for individual investors
The fund is sub-advised by Wilshire, which advises on more than $1.3 trillion in assets and manages $183 billion, including $33.2 billion in alternative assets, and has built its private markets capabilities in-house since 1984. Structured as an evergreen interval fund, it is available for daily purchase with a minimum investment of $5,000 for Class S and Class D shares, does not require ongoing capital calls, and provides tax reporting through Form 1099 rather than Schedule K-1. Jason Schwarz, Chief Executive of Wilshire, said: "We believe the world is at a pivotal moment, as powerful megatrends drive a significant need for new and upgraded infrastructure."
A speculative, illiquid structure
The fund carries risks typical of closed-end interval funds: shares are illiquid, there is no secondary market, and the fund is required to repurchase only a limited percentage of outstanding shares per quarter. The fund is distributed by Quasar Distributors, LLC.