Australian fund of funds IPIF adds third ex-Hastings staffer to team

Infrastructure Partners Investment Fund has increased its fundraising target from A$100m to A$250m to take advantage of new opportunities and high investor appetite.

Australian fund of funds Infrastructure Partners Investment Fund has added ex-Hastings Funds Management director Kurt Lemke to its team as it increases its fundraising ambitions.

Lemke is the third ex-Hastings staffer to join IPIF, after former executive director Jonathan van Rooyen joined as chief investment officer and former senior associate Sean Kim joined as senior investment analyst last year.

Lemke has become IPIF’s head of research and portfolio construction, and previously spent more than four years at Hastings where he was group director for macroeconomic strategy and portfolio construction.

IPIF was established in 2015 by chief executive Nicole Connolly and currently invests through a single product, the IPIF Core Fund.

The firm had around A$135 million ($91 million; €82 million) of funds under management as of September 2019 and went back to the market for a further raising of A$100 million.

IPIF said this week that it has now increased that fundraising target to A$250 million because of new opportunities it has identified with fund managers.

The firm currently has commitments to four open-ended infrastructure funds. Connolly told Infrastructure Investor last year that a commitment to a fifth fund was “possible”, and that the firm was constantly in discussions with prospective managers to add to its portfolio.

The IPIF Core Fund targets a split of 50 percent growth assets and 50 percent regulated assets, and its investors comprise smaller institutional players who cannot afford to access large infrastructure funds alone, as well as self-managed superannuation funds and high-net-worth individuals.

The fund has made commitments to The Infrastructure Fund and Utilities Trust of Australia, which were both managed by Hastings Funds Management before its demise in 2018. Those funds are now managed by Macquarie Infrastructure and Real Assets and Morrison & Co, respectively.

It has also committed capital to AMP Capital’s Diversified Infrastructure Trust and the Global Diversified Infrastructure Fund run by First Sentier Investors.