Financial services group Cantor Fitzgerald announced today plans to launch the Cantor Fitzgerald Sustainable Infrastructure Fund, focused on key infrastructure megatrends including digital transformation, decarbonization, and enhancement of aging infrastructure assets. The fund will be sub-advised by alternative investment asset manager Capital Innovations.
According to a registration statement filed with the SEC, the new fund is being launched as global growth dynamics continue to drive investment in infrastructure worldwide, with investment opportunities arising in the sector driven by factors including the low interest rate environment, increasing allocations in the sector by pension funds. sovereign wealth funds and other investors, rising government stimulus directed towards infrastructure programs, a significant focus on renewable energy generation, and efforts to develop hydrogen utilization, among others.
Jay Frank, President of Cantor Fitzgerald Capital and COO of Cantor Fitzgerald Investment Management, said:
“We are excited about this new venture with Capital Innovations given that infrastructure is a natural addition to our investment platform leveraging our investment bank’s expertise in power, energy, and infrastructure as well as the firm’s domestic and global reach. The need for investment in infrastructure in the U.S. and around the world is extraordinary and we believe our platform is well positioned to provide investors with the opportunity to invest in sustainable investment strategies.”
Targeted areas of investment to take advantage of the identified megatrends will include securities of companies enabling the transition to cleaner energy sources and electrification, companies in the communications sector that own, operate, and develop cell tower, fiber network, satellite and data center assets, and companies in infrastructure sectors that are poised to benefit from increased investment to repair and enhance existing assets.
The new fund is expected to launch in the second quarter of 2022.
Susan Dambekaln, Co-Founder of Capital Innovations, said:
“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 (USD $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.”