Macquarie Infrastructure and Real Assets has closed its second Asia-focused infrastructure fund on its hard-cap of $3.3 billion, creating the region’s largest infrastructure vehicle.
More than 20 LPs in a mix of returning and new investors across Asia-Pacific, North America, the Middle East and Europe have committed to the 10-year closed-ended vehicle, a source familiar with the fundraising process told Infrastructure Investor. The fund has a four-year investment period from the final close date, the source added.
MIRA started marketing Macquarie Asia Infrastructure Fund II in 2017, and raised $3 billion for the first close in December. Alberta Investment Management Corporation made a $300 million cornerstone commitment last August. Early this month, the New Mexico State Investment Council said it approved a $75 million commitment to the vehicle, which is understood to target net returns between 13 percent and 16 percent.
MIRA declined to comment on the details of its fundraising activities. It said the latest close brings MIRA’s global fundraising to $24 billion in the past two years.
More than $1.7 billion of the new vehicle has been committed to toll roads, renewables and petrochemical storage assets in India, the Philippines, Singapore and China, MIRA said in a statement. Last month, it secured the rights to operate nine national highways in India under a $1.5 billion, 30-year concession agreement.
“The Asian infrastructure market is maturing and continues to provide attractive investment opportunities across diverse sectors,” David Luboff, chief executive of MAIF fund series, said. “The fund’s regional mandate allows us to capitalise on these opportunities across geographies, thereby optimising the overall risk-return position,” he added.
Like its predecessor, MAIF II will target investments in Greater China, India, Korea, Japan, Australia, New Zealand and investment-grade Southeast Asian countries.
MAIF I, which closed on $2.3 billion in early 2016, has been fully deployed across seven countries in Asia-Pacific, according to the fund manager.
MIRA has been investing in Asian infrastructure since 1994 and is currently managing more than 50 infrastructure assets in the region. MIRA-managed funds have more than $21 billion of assets under management in Asia-Pacific across infrastructure, real estate, agriculture and energy.