Macquarie Infrastructure and Real Assets announces close of US$625 million Philippines Infrastructure Fund

Macquarie Infrastructure and Real Assets (“MIRA”), part of Macquarie Group, today announced the first and final close of the Philippine Investment Alliance for Infrastructure (“PINAI” or “Fund”).

PINAI, the first and largest infrastructure fund dedicated to the Philippines, reached its target fund size at first close with investor commitments of US$625 million.

MIRA is the manager of PINAI and an investor in the Fund alongside the GovernmentService Insurance System (“GSIS”), the largest pension fund in the Philippines, Dutch pension fund asset manager APG, and the Asian Development Bank (“ADB”).

“The Philippines requires significant investment in infrastructure to meet the needs of what is one of the youngest and fastest growing populations in Asia,” said Frank Kwok, Senior Managing Director of MIRA, Asia.

“With partners such as GSIS, APG and the ADB, we believe PINAI will be an important participant in supporting the delivery of infrastructure projects, which will be critical in sustaining the strong economic growth of the Philippines,” said Kwok.

PINAI has a mandate to invest equity and equity-like instruments directly in infrastructure businesses and projects in the Philippines. It will invest in a mix of both brownfield and greenfield projects across the infrastructure sector, including transport, power, renewable energy, water and telecommunication infrastructure.

GSIS President and General Manager Robert G. Vergara said MIRA was chosen as manager of the largest Philippine infrastructure fund to date after a rigorous selection process of nearly nine months. “MIRA has the expertise and proven track record in Asia,” he said.

Director General for ADB’s Private Sector Operations Department, Philip Erquiaga said he hopes the success of PINAI will spur more private equity funds that will catalyze additional foreign capital into the country, and further the development of domestic capital markets. 

“Apart from our direct equity investment, ADB’s participation can help mobilize additional investment in the Philippines from top tier international partners, foster competition in domestic infrastructure finance, and establish a secondary market for well-performing infrastructure assets.”

Hans-Martin Aerts, Head of Infrastructure Asia at APG Asset Management in Hong Kong added, “PINAI provides for an excellent investment opportunity and we expect it to enjoy an
early mover advantage and to generate attractive risk-adjusted returns for our clients: pension funds in the Netherlands with combined assets of over €300 billion.”

The launch of PINAI builds on MIRA’s successful track record in establishing infrastructure funds in new markets including China, India, Mexico, Africa and Russia. PINAI continues MIRA's development of emerging market infrastructure funds. As a global leader in managing infrastructure businesses for over 17 years, MIRA has access to an extensive pool of infrastructure operational experts as well as relationships with global debt and equity providers.

About Macquarie Infrastructure and Real Assets

Macquarie Infrastructure and Real Assets (“MIRA”), part of Macquarie Group, is a leading global alternative asset manager specialising in infrastructure funds, other real asset funds and customised accounts. Established in 1996, it is the largest manager of infrastructure assets in the world¹ with $US94 billion and 92 infrastructure businesses worldwide.

MIRA’s team of experienced professionals have in-depth operational expertise contributing significantly to the success of the businesses in which MIRA’s managed funds invest.

Investing on behalf of international pension funds and other institutions, MIRA aims to manage investments in infrastructure businesses profitably and responsibly.

Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Founded in 1969, Macquarie employs more than 14,200 people in 28 countries. At 31 March 2012, Macquarie had assets under management of $A327 billion.

Note: All figures as at 31 March 2012

1. Towers Watson Global Alternatives Survey, June 11