Macquarie reaches $3.3bn first close for North American fund

MIP IV is close to meeting its $3.5bn target, as it seeks net returns of between 10% and 12%.

Macquarie Infrastructure and Real Assets has raised more than $3.3 billion for its latest North American infrastructure fund, according to a regulatory document filed on Monday.

Macquarie Infrastructure Partners IV has reached its “initial closing period” after starting to raise capital last year, the Securities and Exchange Commission filing stated. Macquarie is targeting $3.5 billion for the fund, according to documents from New Mexico State Investment Council, which committed $100 million to MIP IV, though sources previously told us it could raise as much as $4 billion.

The vehicle will target 10 percent to 12 percent net returns and between 4 percent and 6 percent gross yield, the documents showed. It will invest in transportation, energy and utilities, telecommunication assets and waste management, primarily in the US and Canada. The asset manager said it expects MIP IV’s portfolio will include seven to 10 infrastructure assets.

Other limited partners known to have committed to the fund include Korea Teachers’ Credit Union, Public Officials Benefit Association and ING Life Insurance Korea.

The firm declined to comment.

Macquarie Infrastructure Partners III closed on $3.04 billion in September 2014, well over its original target of $2 billion. Public pensions that committed to that fund include the State Universities Retirement System of Illinois ($50 million) and Arkansas Teacher Retirement System ($50 million).

Overall, the Macquarie Infrastructure Partners suite of funds has invested $8.5 billion across 28 portfolio companies with $4.4 billion returned to investors. The majority of its investments have been in utilities and energy and have recorded an average annual EBITDA growth of about 7 percent.

Macquarie’s North American team counts more than 35 investment professionals.