QIC has reached a final close on its Global Infrastructure Fund at A$2.35 billion ($1.79 billion; €1.69 billion), exceeding its original target of A$1.75 billion more than two years after launch.
The vehicle’s investor base comprises a strong contingent from Australasia, including China, Japan and Korea, along with institutions from the US and Europe, QIC said. In total, QGIF attracted commitments from 20 LPs, Ross Israel, the firm’s head of infrastructure, told Infrastructure Investor.
Established in the last quarter of 2014, the fund had raised $528 million by the end of that year. It then secured an A$875 million first close in August 2015 thanks to commitments by Australian superannuation fund Hostplus, an Asian sovereign wealth fund, a Chinese insurer and two foundation QIC clients, the firm said at the time.
The vehicle is also backed by the Employees Retirement System of Texas, which confirmed an A$65 million commitment to QGIF in December last year. “We are pleased these investors have also supported QGIF’s innovative fund structure and the platform it presents for co-investment,” Israel said.
The fund targets assets across the transport, energy, utilities and PPP sectors in developed markets. It has invested in three assets since first close, all located in Australia. In October 2015, QIC and its clients agreed to buy EnergyAustralia’s Lochard Energy, which owns and operates the Iona Gas Plant, for A$1.782 billion.
QGIF then partnered with local utility AGL and sovereign vehicle Future Fund to support the development of 1GW of renewables projects Down Under through an A$1 billion joint investment vehicle, the Powering Australian Renewables Fund.
The alternatives investment manager was also part of the consortium that won the A$9.7 billion lease of Port of Melbourne last September. Its partners included the US’s Global Infrastructure Partners, Future Fund, Canada’s OMERS, China Investment Corporation and Korea’s National Pension Service.
QIC's infrastructure arm currently manages A$9.5 billion across 12 direct assets predominantly in OECD markets.