Financial services firm Cantor Fitzgerald is launching a sustainable infrastructure fund, focused on three infrastructure megatrends: digital transformation, decarbonization, and enhancement of aging infrastructure assets.
The fund will capitalize on opportunities arising from the infrastructure sector and driven by low interest rates, increasing allocations to pension funds, and a significant focus on renewable energy and infrastructure projects.
It will invest in a portfolio of infrastructure securities across both private investment funds and publicly traded securities, as well as exchange-traded funds (ETFs) and mutual funds that invest in infrastructure.
Investments may include in both domestic and foreign, including emerging, market companies.
Susan Dambekaln, co-founder of Capital Innovations, subadvsier on the fund, said: “We're looking forward to partnering with Cantor Fitzgerald, a firm with a track record of delivering innovative alternative investment solutions for clients. Investors are increasingly looking to private markets to meet the need for more income and diversification in portfolios.”
“Sustainable investment strategies have seen an increase in demand and are expected to account for a third ($35.3 trillion) of all investments in the world's five largest markets in 2022. Our platform is well positioned to accommodate the growing market,” she added.
Increasingly, asset managers are expanding their sustainable fund offerings.
In November Sun Life Asset Management launched a sustainable fund that invests in global sustainable infrastructure, focusing on water, food, and technological advances in renewable energy.
Meanwhile Citi Bank recently announced a partnership with Breakthrough Energy Catalyst to accelerate development of clean energy technology.
Citi Impact Fund, launched in early 2020, put up the initial $50 million equity investment for the project.
The fund makes equity investments in private sector companies addressing some of society’s most pressing challenges, including physical and social infrastructure and sustainability.