Equitix funds secure £276m financing from Macquarie

The refinancing of previous bank debt is specifically ‘tailored to the investment strategy’ of the two Equitix funds, according to Macquarie.

UK-based manager Equitix has secured £276 million ($390.2 million; €320.6 million) from Macquarie Asset Management to refinance the debt on two of its funds.

The funds – which the parties declined to specify – cover 95 assets in the UK and Europe across Equitix’s traditional PFI and PPP investments, as well as renewable energy and transmission projects. The debt is both inflation- and Sterling Overnight Index Average-linked, Macquarie said in a statement.

It added that the financing replaces previous banking facilities and that the new debt is “tailored to the investment strategy of its funds”. The new facility is believed to provide Equitix with more of an opportunity to de-risk its portfolio and enhance returns. It is also believed to be the first PFI/PPP portfolio-wide financing provided by Macquarie. The firm declined to comment beyond its statement.

Equitix has raised five funds from its flagship fund series to date and remains in market for Equitix Fund VI, for which it had raised £660 million by the end of last year, ahead of its £1 billion target, according to documents from parent company Tetragon. Equitix also last year closed fundraising for its maiden European vehicle, Euro Fund I, on €580 million.

Last year, Macquarie raised £2.7 billion for inflation-linked debt for UK infrastructure assets through a comingled fund and separately managed accounts.