Macquarie’s MIP V reaches $3bn first close – exclusive

Macquarie has also committed 90% of the $5bn raised for its last North America-focused infrastructure fund, MIP IV, according to an LP document.

Macquarie Infrastructure & Real Assets held first close on its fifth North America-focused infrastructure fund last month, according to a source familiar with the fundraise.

After launching Macquarie Infrastructure Partners V in January, the asset manager collected $3 billion of commitments from investors during a turbulent first half of the year which featured a pandemic and economic collapse.

The firm published a new regulatory filing for MIP V on 29 April, and a source told Infrastructure Investor that LPs already committed to the fund received a first close notification on 5 May. MIP V does not have a stated hard-cap.

Similar to its predecessors, MIP V will invest in the transportation, utilities, energy and communications sectors, according to documents published this week by the Arkansas Teacher Retirement System, which committed $50 million. The fund is targeting 10-12 percent net returns.

The LP documents reveal MIP V’s fund terms including a management fee of 0.75 percent on uninvested capital and 1.5 percent on invested capital. Macquarie also offered a first-close discount of 0.375 percent. In addition, it’s also offering lower management fees to LPs based on the amount of their commitment: 1.25 percent for more than $100 million, 1.15 percent for more than $200 million, and 1.05 percent for more than $300 million.

According to the LP documents, Macquarie will invest no more than 20 percent of capital, or $500 million, in a single investment. No more than 25 percent of MIP V’s capital will back a greenfield development, and no more than 20 percent will be invested outside of North America.

The last MIP fund closed in January 2019 on $5 billion and has now committed 90 percent of its capital to nine portfolio companies, according to the LP document. MIP III, which closed in 2013 on $2.6 billion, is largely invested and returning 13.4 percent. MIP II closed in 2008 on $1.6 billion and is generating an 8.3 percent return and is in the divestment stage. The inaugural MIP vehicle has a net return of 8.1 percent after raising $4 billion in 2006.

Macquarie declined to comment for this story.