The Public Officials Benefit Association of South Korea, a pension fund, has approved a A$60 million ($46 million; €41 million) commitment to Macquarie’s new Australian-focused infrastructure fund, sources familiar with the process told Infrastructure Investor.
Macquarie Infrastructure and Real Assets’ (MIRA) new 15-year fund is targeting about A$1.5 billion to invest in core infrastructure assets, like the ones coming out of Australia’s ongoing privatisation programme. The Korean pension is expecting to make an annual return of over 8 percent from the fund, which has reached a first close in December and is due to hold a second close this month. Media reports suggest the fund has already raised some A$400 million.
A spokeswoman from Macquarie declined to comment on the new Australian vehicle.
New South Wales, which sold Transgrid, is now looking to part-privatise Ausgrid, Australia’s biggest electricity network, in a deal that might fetch up to A$14 billion. It has reportedly received two binding binds from China’s State Grid and Hong Kong’s Cheung Kong Infrastructure.
Earlier this year, MIRA announced it had raised $3.1 billion for Asian infrastructure through its regional fund and several specialist vehicles. The fundraise included the Macquarie Asia Infrastructure Fund (MAIF), which hit its $2.3 billion hard-cap in the close, and specialist investment vehicles. The latter are backed by a diverse group of returning and new investors across Asia Pacific, North America and Europe.
Globally, MIRA manages $101 billion of assets on behalf of institutional clients across 45 funds in more than 120 businesses, as at 31 December 2015.