Macquarie Energy Transition Infrastructure Fund

This web page is intended for recipients in Australia only.  

Eligible Investors

The Fund is only open to investment by wholesale clients (as defined in section 761G of the Corporations Act). 

Not open to United States persons

Without limiting the above, the Fund is only open to investment by persons who are: 

1. not a ‘U.S. person’ for the purposes of Regulation S under the U.S. Securities Act of 1933, and 
2. ‘Non-United States person’ as defined in Section 4.7(a)(1)(iv) of the rules of the U.S. Commodity Futures Trading Commission.

The global race to achieve Net Zero carbon emissions by 2050 is accelerating what many believe to be the largest infrastructure opportunity of our lifetime.¹ Macquarie Asset Management, the world’s largest infrastructure investor  with 400+ infrastructure investment professionals, including 110 dedicated green energy professionals, is well positioned to capitalise on this opportunity.²

The Fund offers access to a seed portfolio that includes the following assets.

Macquarie Asset Management ("MAM") has more than 28 years of experience creating, scaling, operating, and transforming infrastructure investments. It has $A938.3 billion in assets under management and actively manages infrastructure and real assets used by approximately 290 million people every day.¹¹ MAM is well positioned to capture this opportunity. METI is MAM’s fifth dedicated energy transition infrastructure equity fund.

The Fund is available to wholesale clients (as defined in the Corporations Act 2001 (Cth)) only.

Key Risks

All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying investments. Generally, the higher the potential return of an investment, the greater the risk (including the potential for loss and unit price variability over the short term). When you make an investment, you are accepting the risks of that investment. It is important to understand these risks before deciding to invest.

In addition, there will be occasions when the Trustee, the investment manager of the Fund's underlying fund (Sub-Fund Investment Manager) and their affiliates may encounter potential conflicts of interest or duty in connection with the Fund, the Fund's underlying fund (Sub-Fund) and the Underlying Investments. Conflicts can create risks for investors and some of these risks are discussed below.

The level of risk that you are willing to accept will depend on a range of factors including your financial objectives, risk tolerance, age, investment timeframe and where other parts of your wealth are invested. The value of your investment and the returns from your investment will vary over time. Future returns may differ from past returns. We do not guarantee the returns of the Fund and you may lose some or all of the money that you have invested. The significant risks of the Fund are described below but other risks may also adversely affect the Fund. You should seek your own professional advice on the appropriateness of this investment for your particular circumstances and financial objectives.

Please note that the risks applying to the Sub-Fund described below also apply to any MAM Managed Funds in which the Sub-Fund invests.

You should read Section 2 (Risks you should consider) of the Fund’s Information Memorandum in full and seek your own professional advice in relation to an investment in the Fund.

Liquidity risk: Investments in the Fund should be considered illiquid, especially during the initial lock-up period, which ends on 1 September 2027 (Lock-up). The Fund will not accept redemptions until the calendar quarter following the end of Lock-up. Even following Lock-up, there is no guarantee of liquidity at the time an investor submits a redemption request and an investor’s ability to have its units redeemed may be restricted at any time. No public market exists for the units in the Fund, and none is expected to develop.

A substantial portion of the Sub-Fund’s assets is intended to be invested in Unlisted Infrastructure Investments and Infrastructure Debt Investments, which are invested for the long term, have limited liquidity and cannot readily be liquidated without impacting the Sub-Fund’s ability to generate full value upon their disposition. This means that such investments may not be able to be sold in a timely manner, potentially resulting in delays in redemption processing by the Sub-Fund (and therefore, by the Fund) or the suspension of redemptions by the Sub-Fund (and therefore, by the Fund).

Although the Trustee will seek to apply the liquidity mechanisms detailed in Section 5.2 of the Information Memorandum, it may not be able to do so during certain periods, or at all, due to the managing general partner of the Sub-Fund not accepting or processing redemptions or suspending redemptions (which it has a broad discretion to do). Investors must be prepared to bear the risks of owning the units in the Fund for an extended period and may not receive any income or capital from the Fund until its investments are realised, which may not be until or following termination of the Fund.​

Investment risk: The risk of an investment in the Fund is significantly higher than an investment in a typical bank account or fixed income investment. Amounts distributed to unitholders may fluctuate, as may the Fund’s unit price. The unit price may vary by material amounts, even over short periods of time, including during the period between a redemption request or application for units being made and the time the redemption unit price or application unit price is calculated. Changes in the valuation of the Underlying Investments may result in the loss of principal or large movements in the unit price of the Fund. The Fund and Sub-Fund will have to meet certain costs and expenses, which may be fixed, while returns are variable, and this may cause or exacerbate poor performance.​

Investment manager risk: Investors will have no right or power to participate in the management or control of the Fund or Sub-Fund and must depend solely on the ability of the Investment Manager and the Sub-Fund Investment Manager to manage the Fund and the Sub-Fund, respectively. Investors will not have an opportunity to evaluate the investments of the Fund or the Sub-Fund before such investments are made. There is no guarantee that either the Fund or the Sub-Fund will achieve its performance or sustainability objectives, produce returns that are positive, or compare favourably against its peers. In addition, the investment strategies and internal trading guidelines of the Fund and the Sub-Fund may vary over time, and there is no guarantee that such changes would produce favourable outcomes.

The Sub-Fund Investment Manager will recommend and decide on the investments that the Sub-Fund will make, whether and when to increase an investment in an existing Underlying Investment, and whether and when to divest. The Sub-Fund Investment Manager is generally expected to implement for the Sub-Fund whatever strategies or discretionary approaches within such broad mandate it believes may be best suited to prevailing market conditions. There can be no assurance that the Sub-Fund Investment Manager will be successful in applying any strategy or discretionary approach to the Sub-Fund’s trading or investment activities. The success of the Fund will be dependent on the Sub-Fund Investment Manager’s ability to identify investment opportunities and implement its investment strategy and the skill and expertise of the investment professionals employed by the Sub-Fund Investment Manager. There can be no assurance that these key investment professionals will continue to be associated with the Sub-Fund Investment Manager throughout the life of the Sub-Fund, and the composition of the team dedicated to the Sub-Fund may change without notice to the investors.​

Deal risk: The availability and volume of investment opportunities suitable for the Sub-Fund is difficult to predict. The Sub-Fund competes against other investors to secure access to assets in a highly competitive environment. Consequently, the Sub-Fund may not be able to identify or secure access to suitable investments or may be required to make investments on economic terms less favourable than anticipated. The Sub-Fund Investment Manager may expend significant resources and costs in relation to a potential investment for the Sub-Fund that does not proceed to completion. Such costs (including any related tax) will be borne by the Sub-Fund and may not necessarily be able to be recouped by the Sub-Fund.​

Risks associated with investments in infrastructure assets: The performance of infrastructure investments are likely to be correlated to the global and domestic infrastructure sector in general, and may be affected by factors such as the availability and cost of finance; risks associated with the general economic climate; geographic or market concentration; the terms of project agreements (particularly upon termination); labour force issues; technical problems (such as mechanical breakdown, part shortages, failure to perform to design specifications, latent defects); default or failure of sub-contractors; the inefficient or inadequate operation or maintenance of assets; decommissioning costs; availability of government funding or subsidies; the level of usage of infrastructure; the level of supply of infrastructure projects; prevailing interest rates; commodity prices (for example, electricity or fuel prices); difficulty with negotiating long-term procurement and sales agreements with counterparties; government regulations; dependence of such projects on a small number of suppliers or supply chain risk.

Infrastructure assets generally include or require title to or access to land, and the assets may be impaired or adversely affected if that title or access is challenged or impeded. Further, the evaluation (and valuation) of infrastructure investments may be based on long-term estimates of matters (such as natural resource availability, asset life, stability of costs and/or demand or usage) that are by their nature difficult to predict, complex and uncertain.  In addition, general economic conditions in relevant jurisdictions, as well as conditions of domestic and international financial markets, may adversely affect operations of the Fund or the Sub-Fund. In particular, because of the long lead time between the inception of a project and its completion, a well-conceived project may, as a result of changes in investor sentiment, the financial markets, economic, or other conditions prior to its completion, become an economically unattractive investment.

Many infrastructure investments include investment in real estate. The Fund will therefore be exposed to the risks inherent in the ownership of real property, including the payment of expenses and other real property taxes, property maintenance and improvements; disposal costs; possible declines in the value of real estate; risks related to general and local economic conditions; possible lack of availability of mortgage funds; overbuilding; extended vacancies of properties; increases in competition, property taxes, and operating expenses; changes in zoning laws; costs resulting from the clean-up of, and liability to third parties resulting from, environmental problems; casualty for condemnation losses; uninsured damages from floods, earthquakes, or other natural disasters; limitations on and variations in rents; risks associated with indigenous land rights and changes in interest rates. ​

Risks associated with investments in renewable energy assets: In addition to the risks generally associated with investments in the infrastructure sector, the Fund is also exposed to the additional risks associated with the ownership of renewable energy infrastructure and renewable energy infrastructure-related assets. This includes increasing competitive pressures within the energy industry; the burdens of ownership of renewable energy infrastructure, including the significant expenditure required over the lifecycle of the asset (that is, development, operation and decommission); local, national and international economic conditions; the supply and demand for services from and access to renewable energy infrastructure; the financial condition of users and suppliers of renewable energy infrastructure assets; changes in interest rates and the availability of funds which may render the purchase, sale or refinancing of renewable energy infrastructure assets difficult or impracticable; changes in laws, including environmental law, and regulations, and planning laws and other governmental rules; environmental claims arising in respect of renewable energy infrastructure acquired with undisclosed or unknown environmental problems or as to which inadequate reserves have been established; changes in energy prices; changes in fiscal and monetary policies; uninsured casualties; underinsured or uninsurable losses, such as force majeure events and terrorist acts; continued growth of the clean technology market worldwide; competitive pressures primarily as a result of consumer demands, technological advances and privatisations; technology risks; availability of resources; power purchase agreement risk; renewable energy pricing; effects of ongoing changes in the electricity supply industry; grid risk; demand and usage risk; action from special interest groups; actions and decisions of the government bodies, including in respect of sovereign rights and permits, and other factors which are beyond the reasonable control of the Fund. Many of these factors could cause fluctuations in usage, expenses and revenues, causing the value of the investments to decline and the Fund’s returns to be negatively affected.​

Disclosures

This information may only be accessed by licensed financial advisers, wholesale clients (as defined in section 761G of the Corporations Act) and investment researchers. It is not to be accessed by retail clients. This information is intended for recipients in Australia only.

Past performance information is for illustrative purposes only and is not a reliable indicator of future performance.

Future results are impossible to predict. This presentation may contain opinions, conclusions, estimates and other forward-looking statements which are, by their very nature, subject to various risks and uncertainties. Actual events or results may differ materially, positively or negatively, from those reflected or contemplated in such forward-looking statements.​

In preparing this presentation, reliance may have been placed, without independent verification, on the accuracy and completeness of information available from external sources. To the maximum extent permitted by law, no member of the Macquarie Group nor its directors, employees or agents accept any liability for any loss arising from the use of this presentation, its contents or otherwise arising in connection with it.​

1. Bloomberg New Energy Finance (BNEF) Outlook 2022 report.
2. IPE Real Assets Top 100 Infrastructure Investment Managers, published July/August 2023 and Macquarie Asset Management Internal Analysis as at 31 December 2023.
3. Zerotracker.net, accessed 17 April 2024.
4. Bloomberg New Energy Outlook 2022, except electrified transport, which is from the Electric Vehicle Outlook 2021 Net-Zero Scenario. The Net-Zero Scenario target global net zero by 2050 in line with 1.77 degrees Celsius of warming. Investment includes electricity grids. There can be no guarantee that such forecast will be achieved. 
5. Capital is still at risk – the value of investments may fall as well as rise and you may not get back the amount originally invested.
6. Sources: MAM Internal Analysis, Cambridge associates, Bloomberg Finance LP. Past performance is not indicative of future returns. Analysis conducted based on quarterly returns between Q4 2003 and Q1 2023. Unlisted Infrastructure: Cambridge Associates Infrastructure Index; Global equities: MSCI World Index; Global bonds: Bloomberg Global Aggregate Total Return Index. Traditional 60:40 portfolio: 60% equities, 40% bonds.
7. "Green impact" means contribution to one or more of the five Green Purposes. Please refer to Section 1.4 of the Information Memorandum for further details. Not all investments to which the Sub-Fund has exposure are anticipated to deliver green impact. However, these investments will support the Sub-Fund’s investment objective by providing the liquidity and returns profile required by the high net worth target investors. The Sub-Fund Investment Manager will also seek, using commercially reasonable efforts, for these investments to be thematically aligned with the Green Purposes. The Sub-Fund Investment Manager will aim to invest at least 80% of the Sub-Fund's investments in investments which are aligned with at least one of the Green Purposes. Investments may have neutral or negative impacts to certain of the Green Purposes or other Sustainability factors, which are considered in the investment decision-making process. Over time, the opportunity set is expected to expand to include decarbonisation of industry and transport. Examples are for illustrative purposes only. The provided examples serve only to represent the types of investment that the Sub-Fund may enter into. Whilst the above examples give an indication of the proposed current focus of the Sub-Fund, there is no guarantee that the Sub-Fund will invest into all or any of the above mentioned sectors either in the near term or long term and investors are requested to review the Fund’s information memorandum.
8. Please note this is a structured infrastructure debt investment. The investment has been closed on 15 April 2024 on Macquarie balance sheet. It will be transferred to the Sub-Fund at cost upon raising of sufficient capital to invest in the deal. Transfer is expected to occur in stages. 
9. Assets may be acquired by Sub-Fund at intervals, though subject to change. Asset acquisitions are subject to investment committee approval. There is no guarantee that investors will be able to participate in the seed assets or that they will be able to participate in such investments on acceptable terms. Additionally, participation in any of the seed assets is not certain and will be subject to factors which are beyond our control including, without limitation, (i) the successful completion of contract negotiations in relation to such seed asset; (ii) no breach or default by any prospective counterparty of its obligations; and (iii) the raising of sufficient capital to invest in the deal. The Sub-Fund is expected to acquire these assets at the original cost incurred by Macquarie plus a 10% per annum risk premium.
10. MAM will partner with Corio Generation and invest alongside Corio in offshore wind development projects. Corio Generation is wholly owned by Macquarie Group. Corio Generation website. 
11. As at 31 March 2024.
12. As at 30 September 2023.
13. As at 31 December 2023.