QIC reaches $528m for global fund

The Australian investment firm has ‘initial’ backing from four investors. It has also hired industry veteran Paul Costello as an independent chairman.

QIC, the Brisbane-headquartered alternatives investment firm, has revealed that – by the end of last year – it had raised $528 million from four institutional investors for its QIC Global Infrastructure Fund.

Infrastructure Investor revealed last year that QIC, which is one of Australia’s largest institutional investors, was in discussions about a possible fund product with a target understood to be about $1.5 billion.

A spokesperson for QIC confirmed that the fundraising news was by way of a “progress update” and was not an official first closing.

“We’re pleased that major institutional investors, including an Asian sovereign wealth fund and a major Australian pension scheme, have committed to our new global infrastructure fund,” said Damien Frawley, QIC chief executive officer, in a statement.

He added: “This is an exciting time for investment opportunities and further growth in the infrastructure sector in key markets around the world, including in the US and Europe.”

QIC also said it had appointed Paul Costello as independent chairman of its QIC Global Infrastructure Investment Committee. Costello was the first chief executive officer (CEO) of Australia’s Future Fund and also the first CEO of the New Zealand Superannuation Fund.

The investment committee also comprises founders Ross Israel and Matina Papathanasiou, two QIC partners on a rotating basis, and independent expert Peter Forbes.

In October last year, QIC announced it had hired Vittorio Lacagnina as a director from US fund manager SteelRiver Infrastructure Partners to lead its fundraising efforts across North America and Europe.

QIC has around $57 billion in funds under management and has over 90 clients including governments, pension plans, sovereign wealth funds and insurers. As well as Brisbane, it has offices in London, New York, San Francisco and Los Angeles.

The firm hit the headlines in April last year with the mega-sized A$7.1 billion (€4.8 billion; $5.5 billion) sale of Queensland Motorways to Transurban, Australian Super and Tawreed Investments.