Macquarie plans second Asia fund

16 May 2017 - 12:00 am UTC

Macquarie is looking to launch a second Asian infrastructure fund after fully investing its first pan-Asia fund, InfraAsia understands.

The Macquarie Asia Infrastructure Fund closed 18 months ago with USD 2.3bn. Sources with knowledge of the matter say this has now been fully deployed and there are preparations underway to launch a second fund.

Raising for the closed end fund could take up to 12 months, but could be done in as little as six months depending on the target for the fund, which was unclear at this stage, and demand.

Investors in the first MAIF include private Dutch pension fund PGGM, Korea National Pension Service, Cathay Life Insurance and Mercer Growth Fund, according to InfraDeals.

Direct investments include Daejon 88MW co-generation plant in Korea, Swarna Tollway and Gujarat Road and Infrastructure Company in India and Nippon Vopak oil and gas storage in Japan.

It was also understood to be bidding on 18 solar power plants totaling 330MW being sold by Hindustan Power projects, as reported.

At its half-year results in October 2016, head of Macquarie’s asset management division, Shemara Wikramanayake, said Asia held better prospects for returns because there is less competition for assets than other more developed markets.

“Asia is a big area of focus in our infrastructure products given the macro backdrop as a place where there is better risk for return just due to less competition,” she said at the time.