Macquarie’s MIP IV closes on $5bn hard-cap

The fund manager’s latest North America-focused vehicle is targeting 10-12 percent net IRRs and a yield of 4-6 percent.

Macquarie Infrastructure and Real Assets has closed its fifth North America-focused fund on its hard-cap of $5 billion, exceeding a $3.5 billion target and the total amount raised for its predecessor, the $3 billion Macquarie Infrastructure Partners III fund.

MIP IV will invest in core and core-plus infrastructure assets in sectors including utilities and energy, transportation, communications and waste management, with ticket sizes ranging from $400 million to $600 million. According to pension documents, MIRA is targeting a net internal rate of return for the fund of 10 to 12 percent and a yield of 4 to 6 percent.

“MIP IV’s successful capital raise demonstrates investors’ ongoing commitment to MIRA’s regional approach to infrastructure investment,” Martin Stanley, global head of MIRA, said in a statement.

Some known investors in the fund include the North Dakota State Investment Board, New Mexico State Investment Council, Korea Teachers’ Credit Union, Public Officials Benefit Association and ING Life Insurance.

MIRA has already begun deploying its latest fund. Last April, it acquired a stake in Aligned Energy, a US-based infrastructure technology company that builds and operates data centres, for an undisclosed sum.

The close of MIP IV, brings MIRA’s total fundraising during the past two years to $29 billion, according to the statement. Its total AUM exceeded $129 billion.