Macquarie receives strong investor support for second European infrastructure fund

15 May 2006

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The Macquarie Bank Group today announced the launch of its second dedicated European infrastructure fund with initial commitments of approximately €615 million from leading institutional investors.  Macquarie European Infrastructure Fund II (MEIF II or the Fund) follows the success of its predecessor fund, which closed in June 2005 after reaching its target of €1.5 billion in investor commitments.

MEIF II is a wholesale vehicle targeting investments that provide essential services to the community, have strategic competitive advantage and produce sustainable and predictable cashflows over the long term.  It will invest in businesses located in European Union (EU) member states, Norway, Switzerland and other countries acceding to the EU within the Fund's commitment period.

Chief Executive of Macquarie European Infrastructure Fund II, Arthur Rakowski, says there is strong investor interest in the new fund, reflecting an increasingly well-developed understanding of the unique investment characteristics of infrastructure businesses.

“Investors have a growing understanding of the value in infrastructure as an emerging asset class.  Infrastructure businesses are essential and long-term in nature which, combined with a strong competitive position, results in relatively stable, long-term real returns.  This is a very attractive proposition for longer-term investors,” says Mr Rakowski.

He says the Fund is experiencing strong support from high calibre institutional investors and anticipates that, by the final closing, MEIF II will significantly exceed its predecessor fund in terms of total committed capital. Commitments to date are from a mix of first time infrastructure investors as well as many who invested in the first Macquarie European Infrastructure Fund.  The majority are European pension funds and institutions.

Mr Rakowski says investor demand is complemented by a strong pipeline of attractive investment opportunities in the Fund’s target region.

“Alongside the growing interest from investors, there continues to be a strong pipeline of infrastructure investment opportunities in the expanding European Union,” says Mr Rakowski.  “Macquarie European Infrastructure Fund II is in a strong position to take advantage of these opportunities.”

The first Macquarie European Infrastructure Fund now has almost 70% of its capital committed to nine high quality assets across Europe.  It is on track to be fully invested within the next six to 12 months as it continues to benefit from consistent deal flow experienced since inception in April 2004.

Macquarie European Infrastructure Fund II will also benefit from Macquarie’s track-record and its global network of expertise in infrastructure investment and management.  Macquarie is a global leader in infrastructure finance and investment.  It has more than €20 billion in equity invested in more than 90 infrastructure businesses around the world – including 25 in Europe.  For more than a decade Macquarie funds have been investing in infrastructure, and have delivered investors an annualised return of 20.1% per annum¹.

“Macquarie European Infrastructure Fund II is in a strong position to access investment opportunities and to benefit from Macquarie’s infrastructure expertise,” says Mr Rakowski.

¹ Annualised return based on all capital raised, distributions paid and valuations (market capitalisation for listed funds and net asset value for unlisted funds) for funds within the Infrastructure and Specialised Funds division since inception to 31 March 2006 (listed funds as at 31 March 2006, unlisted funds as at 31 December 2005). Calculated in Australian Dollars.  Cashflows converted at historic exchange rates.

For further information, please contact:

Karen Smith
Corporate Communications Manager
Macquarie Bank
Tel: (44) (0) 20 7065 2420