Exclusive: Macquarie raises $6.9 billion for North America infrastructure fund

Macquarie and CDP win EU approval for Open Fiber acquisition
Macquarie and CDP win EU approval for Open Fiber acquisition Copyright Thomson Reuters 2021
By Reuters
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By Chibuike Oguh

- Macquarie Group Ltd's asset management division has raised $6.9 billion for its latest fund dedicated to investing in North American infrastructure, well over its $5 billion target, the Australian bank told Reuters on Tuesday.

The fundraising was completed as U.S. lawmakers negotiate a plan to spend $1.2 trillion over five years on roads, bridges, ports and other public works projects, with some of the financing coming from private investors.

Macquarie Infrastructure Partners (MIP) V will seek to invest in companies in the waste management, utilities, energy, transportation and communication sectors, primarily in the United States.

Macquarie's prior funds, the $5 billion Macquarie Infrastructure Partners IV and the $3 billion Macquarie Infrastructure Partners III, have returned 9.4% and 13.1% of their investors' money as of September last year, according to the State Universities Retirement System of Illinois, an investor in both funds.

"MIP V is meant to be a continuation of the strategy of the previous MIP vintages. The MIP funds now span 18 years and multiple economic cycles - we really think this is our sweet spot, focusing on similar risk-profile assets and sectors," Macquarie Infrastructure Partners Chief Executive Karl Kuchel said in an interview.

Infrastructure funds targeting North American investments raised $53 billion last year. About $100 billion was raised for infrastructure globally, with funds earning a net internal rate of return (IRR) of 8.6% in the 10 years to June last year, according to industry data provider Preqin.

Macquarie has been investing in North American infrastructure since 2004 and has raised about $21 billion since then. Some recent deals include the $2.9 billion acquisition of telecoms firm Cincinnati Bell Inc and the acquisition of Utah-based renewable energy company Cyrq Energy Inc for an undisclosed amount.

Macquarie's infrastructure funds are managed by Macquarie Asset Management, which has $427 billion in assets under management spread across Australia, the Americas, Europe, and Asia.

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