Investors commit more than US$10 billion (€7.5bn) to new Macquarie infrastructure funds

02 May 2007

The Macquarie Bank Group today announced that it has closed two new infrastructure funds, raising a total of more than US$10 billion (€7.5bn) from major pension funds and other institutional investors around the world.

• Macquarie European Infrastructure Fund II (MEIF II), which confirmed commitments of US$6.3bn (€4.6bn), will invest in a diversified portfolio of eight to 15 infrastructure assets located across the expanding European Union. 
• Macquarie Infrastructure Partners (MIP), a US$4bn (€2.9bn) fund, will invest in infrastructure and infrastructure-like assets in North America.

To date, the two funds have committed to invest a total of US$4.5bn (€3.3bn), or 44 per cent of funds raised, in 13 assets across sectors including toll roads, ports, utilities and telecommunication infrastructure (see detailed list below).

According to Arthur Rakowski, Chief Executive Officer of MEIF II, this milestone further demonstrates Macquarie’s leading position in the global infrastructure sector.

“Investors recognise Macquarie’s outstanding track record in acquiring and managing high quality infrastructure businesses for the long-term, to provide stable and predictable returns,” Mr Rakowski said.

“Macquarie manages more than US$44 billion* (€33 billion) in equity across a portfolio of over 100 businesses worldwide. We have achieved a return to investors of 20.2%** pa over 10 years,” he said.

“Despite increasing awareness and investment capital available for infrastructure assets we have consistently been able to acquire good assets at prices that represent value for our investors,” said Christopher Leslie, Chief Executive Officer of MIP.

 “We believe this attests to the strength and uniqueness of our approach. We have over 900 infrastructure specialists around the world, many with substantial industry backgrounds, that bring a unique depth of knowledge, relationships and operational experience. This enables us to be selective, focusing our efforts on opportunities where we can deliver greater value for investors,“ Mr Leslie said.

“Our long-term investment horizon is fundamental to our approach and well-suited to the important nature of infrastructure businesses. We take a responsible, long-term approach, working collaboratively with all stakeholders, including employees, customers, Government and the wider community, to ensure sustainable growth.

“This is important to our investors, many of whom are investing in this asset class for the first time, and is the basis on which we have built our success in infrastructure investment and management over more than a decade,” added Mr Leslie.

Macquarie European Infrastructure Fund II
MEIF II is Macquarie’s second diversified pan-European infrastructure fund and follows the success of the €1.5bn Macquarie European Infrastructure Fund (MEIF) which was established in April 2004 and is now fully committed to nine investments including Wales & West Utilities (UK), Wightlink Shipping (UK), Arlanda Express (Sweden), Brussels Airport, Autoroutes Paris-Rhin-Rhone (France) and NRE (Netherlands). A significant number of investors in MEIF have also invested in MEIF II, along with a number of investors that are new to the infrastructure asset class including several UK pension fund investors.

To date, MEIF II has invested US$3bn (€2.2bn) in: 

• Thames Water, the UK’s largest water and wastewater company
• NCP, the UK’s leading provider off-street car parking 
• Arqiva and National Grid Wireless, providers of television and radio transmission services to broadcasters in the UK
• Airwave, the UK’s largest provider of public safety communications services.
  

Macquarie Infrastructure Partners
Headquartered in New York and established in May 2006, MIP is a diversified unlisted fund focusing on infrastructure and infrastructure-like investments in North America.  The majority of MIP’s investors are North American and represent a broad range of investor types including public pension funds, corporate pension funds, insurance companies, endowments & foundations, Taft-Hartley funds and high-net-worth clients.

To date MIP has invested or committed to invest US$1.5bn (€1.1bn) in:

• Duquesne Light Holdings, the regulated electricity utility serving the city of Pittsburgh, Pennsylvania, and surrounding areas
• Aquarion Company, the largest regulated water utility in New England
• Halterm, a container port terminal located in Halifax, Nova Scotia
• Fraser Surrey Docks, a container and breakbulk port terminal located in Vancouver, British Columbia
• Indiana Toll Road, a 157 mile toll road spanning the full length of northern Indiana
• Chicago Skyway, an 8 mile toll road in southern Chicago, Illinois
• South Bay Expressway, a new 9 mile toll road opening in 2007 near San Diego California
• Dulles Greenway, a 14 mile toll road in Loudoun County, Virginia.
  

EDITORS NOTES

The Macquarie Bank Group
The Macquarie Bank Group (Macquarie) comprises Macquarie Bank Limited and its worldwide affiliated entities. MEIF II and MIP are managed by members of the Macquarie Bank Group, a leading global investor and manager of infrastructure businesses.  Members of the Macquarie Bank Group manage more than US$44 billion (€33 billion) in equity invested in infrastructure and essential service assets around the world through a range of listed and unlisted vehicles. Infrastructure investments managed by Macquarie include investments in the energy, water, telecommunications and transportation sectors in the UK, Germany, Portugal, Italy, France, Sweden, Denmark, the Netherlands, Belgium, Canada, US, Australia, Korea, Japan and South Africa.  Macquarie aims to manage its investments in infrastructure assets profitably and responsibly.

For further information, please contact:

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

* For listed funds, market capitalisation as at 31 March 2007 plus fully underwritten or committed future capital raisings. Unlisted funds measured as committed capital less any called capital which has subsequently been returned to investors.  Invested capital for other Macquarie managed assets.  For jointly managed funds the amount is representative of Macquarie’s share in JV manager.  Adjustments have been made where Macquarie-managed funds have invested in other Macquarie-managed funds.  Exchange rates as at 31 March 2007.

** Annualised return based on all capital raised, distributions paid and valuations (market capitalisation for listed funds and net asset value for unlisted funds) for Macquarie’s Investment Banking Funds Division funds since inception to 31 March 2007 (listed funds as at 31 March 2007, unlisted funds as at 31 December 2006).  Calculated in AUD.  Cashflows converted at historic rates.