Macquarie raises €4bn for fifth euro fund

The Australian firm has secured a first and final close on its flagship vehicle within eight months of launch.

Macquarie Infrastructure and Real Assets has reached a final close on European Infrastructure Fund 5, its flagship offering, on its hard-cap of €4 billion.

The amount collected is significantly higher than MEIF5’s original target, which Infrastructure Investor reported last year was roughly in line with that of its €2.75 billion predecessor. Describing the vehicle has “significantly oversubscribed”, the firm concluded its fundraise through a single close within eight months of launch. 

The fund is backed by more than 80 investors from around the world, with the majority from Europe, the Middle East and Africa and a significant portion from Asia and the Americas, a source with knowledge of the matter told Infrastructure Investor. MEIF5 has a 12-year tenure, slightly longer than MEIF4.

It is understood that MEIF5 will aim to deliver a mid-single digit cash yield and a total return of 10-12 percent per annum.

Macquarie declined to comment on the vehicle's investor base, tenure and expected performance.

Known investors in the fund include China Life Insurance Company, Cathay Life Insurance and Fubon Life Insurance, according to Infrastructure Investor Research & Analytics. It will follow a strategy similar to MEIF4, which was focused on utilities, transportation, communications infrastructure and renewable energy throughout Europe. 

“The new fund has a well-developed pipeline of prospective investments and expects to commence deployment of capital in the near term,” said Martin Stanley, global head of MIRA, in a statement. The firm added that the fund’s firepower will be bolstered by “significant” co-investment pledges.

Macquarie said it has raised $29 billion over the past five years, including a $3 billion North American infrastructure fund and a $2.3 billion pan-Asian infrastructure fund, closed in September 2014 and February 2016 respectively.

The firm is currently exiting assets from the €4.6 billion, 2009-vintage MEIF2, with assets including stakes in UK utility Thames Water and telco towers group Arqiva soon to be on the block.