Global, 03 May 2013
The €2.75 billion ($US3.5 billion) final close of its fourth European infrastructure fund has taken Macquarie Infrastructure and Real Assets’ (MIRA) global fund raising to a total of $US9.3 billion in the past two years, including new infrastructure funds in Korea, the Philippines and China, and a Mexican Real Estate Investment Trust. Its listed funds have experienced further market capital growth of $US2.8 billion over the same period.
Macquarie European Infrastructure Fund 4 (MEIF4) has closed fundraising with €2.75 billion ($US3.5 billion) in investor commitments - well above its initial €1.5 to €2 billion target. In addition, co-investment arrangements of at least a further €2 billion have been agreed with its investors. It has already committed approximately €500 million to two core, regulated infrastructure assets. In July 2012, it led the consortium which acquired Open Grid Europe1, Germany’s largest gas network, from EOn. The consortium included a number of MEIF 4 investors. In December 2012, it acquired a stake in a Czech gas network from RWE.
“Institutional investors increasingly understand the positive role infrastructure can play in their portfolios. As a result, it is a strongly growing asset class,” said Martin Stanley, Global Head of MIRA. “Experienced fund managers will have an important role to play in responsibly investing this growing pool of capital in much-needed infrastructure across the globe.”
“As the asset class matures, investors are also increasingly rigorous in their manager selection process, focusing on access to investment opportunities, investment strategy and team, ability to add operational value and proven track record,” said Mr Stanley. “For this reason, we are particularly pleased with the support that MEIF4 and our other regionally focused funds have received from investors around the world.”
MIRA manages its infrastructure investments through a range of listed and unlisted funds and managed accounts, largely dedicated to specific regions or countries. This regional approach gives investors global infrastructure exposure tailored to their needs, recognising varying risk/return profiles of different asset types, stages of maturity and jurisdiction. It also allows for dedicated, expert management located where the businesses are.
Access to investment opportunities also differs from market to market, and knowledge of local conditions, regulation and market participants is increasingly important. After almost 20 years’ investing in infrastructure around the world, MIRA has built experienced teams in every region.
“There continues to be a huge need for infrastructure investment in both developed and developing markets,” said Mr Stanley. “To facilitate this investment, local knowledge and operational expertise are key to sourcing good assets and managing them well.”
MIRA’s portfolio is experiencing constant renewal and growth. Over the last two years MIRA has raised $US9.3 billion in new equity, invested $US6.1 billion of equity in 32 assets and realised nine infrastructure assets in maturing funds.
MEIF4 is a successor fund to MEIF1, 2 and 3 which have been investing in European infrastructure since 2003 and have together committed more than €7.3 billion of equity to over 20 infrastructure businesses.
MIRA is part of Macquarie Funds Group, the asset management arm of Macquarie Group (Macquarie), a global provider of banking, financial, advisory, investment and funds management services. Founded in 1969, Macquarie employs more than 13,600 people in 28 countries and has over $US360 billion2 in assets under management.
Macquarie pioneered infrastructure as an asset class almost 20 years ago. Today it is the world’s largest manager of infrastructure and also has a growing portfolio in real estate, agriculture and energy investments. MIRA has assets under management of $US101 billion in 114 portfolio businesses, ~300 properties and 3.6 million hectares of farmland.
Investing on behalf of pension funds and other institutions, MIRA has a track-record of responsible, profitable management. Its team of approximately 400 executives around the world, many with significant operational expertise at senior levels, contribute materially to the sustained success of MIRA’s portfolio companies and the communities they serve.