Aus & NZ: Infrastructure Partners Investment Fund in AUD 70m capital raising

15 May 2018 - 12:00 am UTC

Infrastructure Partners Investment Fund (IPIF) is courting investors in a new round of capital raising, with a target of AUD 70 million (USD 52.6m) by the end of June.

The fund is seeking to expand infrastructure asset exposures in its flagship fund, IPIF Core, which invests in core unlisted infrastructure, with exposures to both mature and growth assets, it said in a statement on Tuesday (15 May).

The raising will see more investment in “high quality, marquee” infrastructure assets including Melbourne Airport, PowerCo in New Zealand and Reliance Rail in New South Wales, according to IPIF Executive Director, Investments, Nicole Connolly.

Set up in 2015, IPIF Core is an opened ended fund with investments in Utilities Trust of Australia, Colonial First State’s Global Diversified Infrastructure Fund (GDIF) and has just been approved to invest in AMP Capital’s Diversified Infrastructure Fund.

It is designed to attract high-net-worth individuals, self-managed super funds and smaller institutional investors.

IPIF will give priority to existing investors but is also seeking new investors.

IPIF Core has delivered an annual return of 9.5% and attracted AUD 100 million in funds under management since inception.

The current portfolio includes transport assets in Perth, Adelaide, Melbourne and Brisbane Airports and Interlink Roads, and energy and utilities assets including TransGrid, South East Water and Phoenix Natural Gas.

IPIF Core is owned by its three Directors – Connolly along with Non-Executive Directors Hugh Gurner and Steve Merlicek. The fund is currently managed by Hastings Fund Management but will be taken over by Morrison and Co from July this year.

Although there is high demand for infrastructure investments, unlisted infrastructure had been notoriously difficult to access for smaller investors, Connolly said.

“We are pleased with the progress of IPIF Core to date and the level of interest we have received from direct investors and smaller institutional funds. The capital raising gives us the opportunity to respond to high levels of investor demand for access to this attractive asset class.”

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Infrastructure Partners Investment Fund