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Macquarie raises $6.9bn in Americas-focused infrastructure fund

Macquarie Group has also provided an update on the first quarter of its 2022 financial year (1Q22) ahead of its 2021 Annual General Meeting.

By João Marques Lima

Founder and Editor, The Tech Capital

3 Mins

July 30, 2021 | 12:00 AM BST

Macquarie Asset Management said it closed Macquarie Infrastructure Partners V (MIP V) fund after reaching $US6.9 billion in commitments.

MIP V is Macquarie Asset Management’s sixth Americas-focused, unlisted infrastructure fund.

The Australian financial services firm Macquarie Group’s (ASX: MQG; ADR: MQBKY) subsidiary said it will seek to invest the fund’s capital in infrastructure assets and will be primarily focused on the transportation, communications, waste management, utilities and energy sectors.

Leigh Harrison, Global Head of Macquarie Asset Management’s infrastructure and renewables team, said: “We greatly appreciate investors’ strong support for MIP V as part of our broader global infrastructure platform.

“We remain focused on delivering for our investors and ensuring that we manage investments responsibly and sustainably for the benefit of all stakeholders.”

Karl Kuchel, CEO of Macquarie Infrastructure Partners, added: “We continue to access a range of high-quality investment opportunities across the region as we build the MIP V portfolio and will utilize the team’s sector and operational expertise to manage these investments over time.”

Macquarie Asset Management’s global infrastructure capital raising totalled more than $38 billion in the last three years through 31 March 2021.

In addition to the fund closing, Macquarie Group has also provided an update on the first quarter of its 2022 financial year (1Q22) ahead of its 2021 Annual General Meeting.

Macquarie Group’s managing director and chief executive officer, Shemara Wikramanayake, said that improved trading conditions saw “Macquarie’s Operating Groups deliver net profit contribution that was significantly up on the first quarter of the 2021 financial year (1Q21) which had mixed trading conditions”.

Macquarie’s annuity-style businesses (Macquarie Asset Management (MAM) and Banking and Financial Services (BFS)) combined 1Q22 net profit contribution was slightly up on 1Q21, primarily due to higher average volumes and lower provisions in BFS. This was partially offset by reduced contribution from MAM, where the absence of the gain on sale of the rail operating lease business in 1Q21 was partially offset by the Macquarie Infrastructure Corporation (MIC) disposition fee in 1Q22.

The group’s markets-facing businesses (Commodities and Global Markets (CGM) and Macquarie Capital) combined 1Q22 net profit contribution was significantly up on 1Q21, primarily due to the sale of the UK commercial and industrial smart meter portfolio which, as foreshadowed, was partially offset by the timing of income recognition on storage and transport contracts in CGM. Macquarie Capital recorded significantly higher investment-related income.

Shares of the company on the Australian Stock Exchange were trading in green (+0.29%; AU$157.13) and inching up to its best stock price since the company was listed (AU$162.06 in early May).

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João Marques Lima

Founder and Editor, The Tech Capital

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