Exclusive: ICG raises about A$250m for funds, SMAs

The Australian infrastructure manager expects to have collected about half of its A$1bn target by the middle of this year.

Infrastructure Capital Group, an Aussie-based mid-market fund manager, is seeking to complete two to four deals across its businesses by the middle of this year while forging ahead with efforts to grow its separate accounts business. 

Tom Laidlaw, ICG’s chief executive, told Infrastructure Investor that the firm has made “reasonable progress” in its efforts to raise A$1 billion ($768 million; €728 million) in fresh capital, initiated last April. ICG is now a quarter towards this target, he said, adding that it hopes to have collected about A$500 million by the middle of this year.

The capital will be deployed across ICG’s A$450 million Diversified Infrastructure Trust and A$1.1 billion Energy Infrastructure Trust fund, as well as separate accounts for institutional investors, a business the firm is looking to grow, Laidlaw said. ICG is seeking to build partnerships with a small number of investors to provide tailored products that cater to their needs, he explained.

The firm, which manages about A$1.8 billion, has secured a commitment from an offshore investor, which Laidlaw did not identify. ICG had until recently only been backed by Australian institutions, including super funds, government funds and corporate pensions, with high-net-worth individuals also contributing a minority of the capital. 

Laidlaw said the firm has been looking at a couple of investment opportunities, including an energy storage project, to deploy proceeds generated by its exit from Sydney’s ANZ Stadium in 2016. The fund manager was one of the suitors for Sunshine Coast Airport’s privatisation, awarded last week to a consortium comprising Palisade Investment Partners and two super funds. 

Last December, ICG won its first separate account with an A$200 million mandate from the Northern Territory government to manage the state’s Infrastructure Development Fund. The firm said the move reflected “a growing preference among investors for single-client account structures that are geared to specific objectives and require specialist capacity and focus”.