John Laing Infrastructure fund targets £270m listing

John Laing Group has announced a £270m London listing for an infrastructure fund, which would be the second largest this year after Anthony Bolton’s Fidelity China Special Situations fund.

The fund would target a “strong, predictable dividend yield” and an internal rate of return of 7-8%. It would invest in public finance initiative or public private partnership  infrastructure projects with inflation-linked returns.

The company would launch without debt and would operate with a leverage cap of 25% of total assets. John Laing Group would retain a minimum stake of 20%. (article continues below)

The launch proposals play on growing investor interest in infrastructure investments offering an inflation-linked income, particuarly with record low interest rates and concerns about inflation rising from its current 3.1% level.

Investment trust market makers such as Dexion Capital have moved in to tap demand over the last 12 months and offer an increasing range of strategies in closed-end form.