Crédit Agricole Asset Management Alternative Investments is to launch an infrastructure fund of funds in October 2008 with a target size of €600 million (about $850 million). The fund will be managed by CAAM Capital Investors. CAAM CI’s infrastructure team will leverage off CAAM AI entities dedicated to alternative fund of funds management.

Infrastructure assets are defined as long-lived assets such as airports, ports, regulated electricity assets, hospitals, cable networks, water and distribution assets which provide an essential service to the community. Investment in these assets has been driven by both the need in OECD countries and emerging markets to develop and upgrade these facilities and by increasing governmental support for such projects.

This new alternative asset class attracts investors seeking sources of diversification, stable cash flows and an attractive risk/return profile. Third party infrastructure funds have been growing rapidly in the past four years and today include numerous different strategies and investment styles.

Philippe Taillardat, head of infrastructure investments at CAAM CI, said: “The emergence over the last few years of many new investment groups will increase competition for quality assets, making manager selection a critical factor to building successful long-term exposure to the infrastructure asset class.”

Marc Romano, chief executive of CAAM AI, added: “The CAAM CI infrastructure fund of funds is one of the four strategic axes in our product offering for investors, alongside private equity, hedge and real estate funds of funds. Crédit Agricole Asset Management can now offer investors a complete range of alternative asset classes to optimise portfolio construction.“