Macquarie Energy Transition Infrastructure Fund

In the EEA this is a marketing communication.

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

Initial Fund investments

The Fund offers access to a seed portfolio. Galehead, Aula Energy, Treaty Oak, and the additional three assets mentioned below are expected to be transferred to the Fund at cost plus markup, but below fair market value.¹¹

Macquarie Asset Management ("MAM") has more than 28 years of experience creating, scaling, operating, and transforming infrastructure investments. It has $601.9 billion in assets under management and actively manages infrastructure and real assets used by approximately 280 million people every day.¹⁴ MAM is well positioned to capture this opportunity. METI is MAM’s fifth dedicated energy transition infrastructure equity fund.

Key Risks 

An investment in the Fund is subject to a high degree of risk.

An investment in the Fund is speculative and requires a medium-to-long-term commitment, with no certainty of return. 

Returns: Returns generated by the Fund’s investments may be insufficient to compensate Shareholders adequately for the business and financial risks that must be assumed. There is no guarantee that the Fund’s performance will meet any target or projected return. 

No capital guarantee: The value of investments may fall as well as rise and Shareholders may not get back the amount invested. Past performance does not predict future returns and past performance or overall track record of MAM or any MAM Managed Entities cannot be taken as an indication of future performance of the Fund.

Liquidity: There is no guarantee of liquidity at the time an Investor submits a redemption request and an Investor’s ability to have its Shares redeemed by the Fund may be limited and at times an Investor may not be able to liquidate its investment in the Fund. Investors should have the financial ability and willingness to accept the risks and lack of liquidity associated with an investment in a Fund of the type described herein.

ESG: The Fund’s ESG objectives subjects it to a variety of risks, not all of which can be foreseen or quantified. It is possible that the investments selected are unable to obtain or realise the positive environmental impact outcomes that they seek to deliver. Impact risks include the risk that target impact and sustainability objectives of the investment are not achieved, the risk of negative impact creation and the risk that the Investment Manager does not receive relevant data for measuring and reporting outcomes.

Disclosures

This website has been prepared for information purposes only and is being delivered on a confidential basis to a select number of institutional and sophisticated investors in connection with Macquarie Energy Transition Infrastructure Fund, a sub-fund of MAM S.C.A., SICAV-RAIF (the “Fund”). Please refer to the Private Placement Memorandum and Supplement for investor eligibility criteria.

In the EEA, this is a marketing communication with a purely marketing purpose which is not contractually binding or an information document required by any legislative provision and is not sufficient to take an investment decision.  Please refer to the Key Investor Document, Private Placement Memorandum and Supplement (as amended and supplemented from time to time) of the Fund before making any final investment decisions.

The name Macquarie as used on this website refers to the Macquarie Group which comprises Macquarie Group Limited ABN 94 122 169 279 and its worldwide affiliates. Macquarie Group comprises two separate sub groups, a banking group (including Macquarie Bank Limited ABN 46 008 583 542) and a non-banking group which includes Macquarie Asset Management (MAM), a full-service fund manager. Within MAM, MAM Real Assets provides fund management services in relation to real assets, including infrastructure and real estate. 

Local distributors have been appointed by the Fund to distribute the Fund.  Please contact your local distributor for further details. 

Any recipient who is not eligible to enter this website should leave the website immediately. Any reproduction or distribution of any materials on this website, in whole or in part, or the disclosure of its contents to any person other than to a recipient’s professional advisers, without the prior written consent of Macquarie, is prohibited. All recipients agree they will keep confidential all information contained herein and not already in the public domain. By accepting this document, a recipient agrees to the foregoing.

Other than Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie Bank”), any Macquarie Group entity noted in this document is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia).  The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank.  Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities.  In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.

This website and any information therein does not constitute an offer to sell or a solicitation of an offer to subscribe or purchase or a recommendation of any securities and may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. The information on this website is subject to discussion, completion and amendment. This website does not contain all the information necessary to fully evaluate the potential of any investment and information presented does not take into account the investment objectives or financial circumstances of the recipient and, as such, no reliance should be placed on its contents. 

Nothing on this website constitutes a commitment from Macquarie to provide or arrange any facility or is otherwise imposing any obligation on Macquarie. Past performance is not an indication of future performance and Macquarie does not guarantee the performance of or return of capital from any investment.

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance data quoted.

Risks associated with investing. An investment in the Fund should be considered a speculative investment that entails substantial risks; you may lose part or all of your investment or your investment may not perform as well as other similar investments. The purchase of interests in the Fund entails a high degree of risk and is suitable for sophisticated investors for whom an investment in the Fund does not represent a complete investment program, and who fully understand and are capable of bearing the risk of an investment in the Fund. Potential investors in the Fund should carefully consider the private placement memorandum, including in particular the risk factors in Section 18: “Risk Factors” and the sub-fund supplement, including in particular Section 9: “Risks Factors” before making a decision to invest in the Fund.     

Nature of Information: Certain information on this site has been obtained from sources that Macquarie believes to be reliable as of the date presented; however, Macquarie cannot guarantee the accuracy of such content, assure its completeness, or warrant that such information will not be changed. In particular, (i) pricing information is estimated and unaudited and (ii) commentary on specific securities, if any, reflects the author’s analysis. The information on this site is current as of the publication date indicated. Macquarie is under no obligation to update the information to reflect changes after the publication date. 

The website contains selected information and does not purport to be all-inclusive or to contain all the information that may be relevant. Recipients must rely on their own examination of the legal, tax, financial accounting and other consequences of any investment in the Fund, including the merits of investing and the risks involved. Recipients should not treat the contents of this document as advice relating to legal, tax, accounting or investment matters and are strongly advised to conduct their own due diligence including, without limitation, the legal, tax and accounting consequences to them, and to consult their own professional advisers accordingly.

This website may contain certain forward looking statements, forecasts, estimates, projections and opinions (“Forward Statements”). Any Forward Statements represent our opinions, expectations, beliefs, intentions, estimates or strategies regarding the future, which may not be realised. These statements may be identified by the use of words like “anticipate”, “believe”, “estimate”, “expect”, “intend”, “may”, “plan”, “will”, “should”, “seek”, and similar expressions. The Forward Statements reflect our views and assumptions with respect to future events as of the date of this document and are subject to risks and uncertainties. No representation is made or will be made that any Forward Statements will be achieved or will prove to be correct. A number of factors, in addition to any risk factors stated in this material, could cause actual future results and operations to vary materially from the Forward Statements. Given these uncertainties, undue reliance should not be placed on the Forward Statements. We do not undertake any obligation to update or revise any Forward Statements, whether as a result of new information, future events or otherwise. Similarly no representation is given that the assumptions disclosed in this document upon which Forward Statements may be based are reasonable. The recipient acknowledges that circumstances may change and the contents of this website may become outdated as a result. Any financial projections have been prepared and set out for illustrative purposes only and do not in any manner constitute a forecast. There can be no assurance that the investment strategy or objective of any investment will be achieved or that investors will receive a return of the amount invested. Investment is subject to significant risks of loss of income and capital.

This document is intended only for professional investors. Investment in the Fund is available only to investors for whom it has been deemed suitable and who meet the relevant investment classification.  

By investing in Fund, your capital is at risk.

The Fund invests in assets that may at times be hard to sell. This means that there may be occasions when you experience a delay or receive less than you might otherwise expect when selling your investment. For more information on risks, see the Private Placement Memorandum Fund Supplement and key investor information document.

Additional notice to residents in Hong Kong 

Offering of the website: Access to this website from Hong Kong is hosted by Macquarie Funds Management Hong Kong Limited (“MFMHK”), which is licensed by the Securities and Futures Commission in Hong Kong to carry out Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities as defined in the SFO. 

Product(s) referred to in the website: The contents of this website and the offering documents of the product(s) referred to in the website (the “Product(s)”) have not been reviewed by the Securities and Futures Commission or any regulatory authority in Hong Kong and no action has been taken in Hong Kong to authorise this website or the materials on this website. You are advised to exercise caution when viewing this website. If you are in any doubt about the contents of this website, you should obtain independent professional advice. 

No offer of securities or investment advice: The materials and information made available on this website is provided for informational purposes only and do not constitute or form part of any offer, invitation, inducement, advice, recommendation or solicitation to subscribe for or to acquire any Product(s). The materials on this website do not take into account the particular needs of any user and the website does not provide specific investment advice to any individual viewing the content of the website.

Risks Associated with Investing: The Product(s) in this website are available to Professional Investors only. They may involve complex products and investors should exercise caution in relation to the product. All investors should consider the features, terms, investment objectives, risks and charges of the Product(s) carefully before investing. All investors are urged to read the offering documents of the Product(s) in their entirety before investing. Past performance is not necessarily indicative of future results. Investors may lose more than the invested amount.

No client relationship: The offering of this website, and your access to this website, does not constitute a client relationship between you and MFMHK. MFMHK is not providing services to you in a regulated activity per se by offering the website.

Additional notice to residents in United States

The Fund is not being offered in the U.S. or to U.S. persons. The information on this website does not constitute investment advice, or an offer to sell or the solicitation of an offer to buy any securities in any fund or product offered by MAM. Such offer or solicitation may only be made pursuant to the current offering documents for such fund or product, which will be provided only to eligible investors. Please see important end notes and additional disclosures contained on the website and any materials provided therein.

The information and documents contained on the website relate to securities which have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and according to the rules, regulations and laws of the U.S., may not be offered, sold or delivered within the U.S. (or any State thereof) or to, or for the account or benefit of, U.S. persons. The documents contained on the website may contain legends or other restrictions limiting the persons who, or the circumstances under which certain persons may, participate in an offering, and the availability of the information through the website does not alter or change in any way the nature of or affect any such restriction.

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 There is no guarantee that the Fund will achieve its investment objectives. Target returns are hypothetical returns, not actual returns. The Target Net Return assumes (a) management fees and performance compensation charged to the Fund in accordance with the headline terms generally expected of the Limited Partnership Agreement of the Fund (b) offering and organizational expenses incurred directly by the Fund at the maximum capped amount indicated in the Memorandum (c) no management fee offset and (d) annual, ordinary ongoing partnership expenses as per the PPM Supplement. Actual expenses or costs of the Fund may vary significantly from such assumptions, which could result in a materially lower Net Return. The target Net Return for individual investors in the Fund may differ depending on the size and timing of an individual investor’s Capital Commitment. Target returns being shown for information purposes only and should not be relied upon to make predictions of actual performance. Target returns are based on facts and assumptions that we believe to be reasonable. Targeted performance is not a guarantee, projection or prediction and is not necessarily indicative of future results. The scenarios presented are an estimate of future performance based on current market conditions and are not an exact indicator. What you will get will vary depending on how the market performs and how long you keep the investment. Future performance is subject to taxation which depends on the personal situation of each investor, and which may change in the future and may lead to a financial loss if no guarantee on the capital is in place.

⁴ Please refer to the PPM Supplement for further information on distribution share classes.

⁵ METI is expected to acquire these assets at the original cost incurred by Macquarie plus a 10% per annum risk premium. Compelling entry value proposition in embedded value of six seed assets, given they all have either been sourced bilaterally or have been created by MAM. Based on independent Valuation Reports prepared solely for the purpose of the Macquarie Infrastructure and Real Assets (Europe) Limited (“MIRAEL”). Seed portfolio warehoused by MAM balance sheet will be transferred below current market valuation. Additional investments being secured will not benefit from this.

⁶ Zerotracker.net, accessed 17 April 2024.

⁷ 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. 

⁸ 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.

⁹ 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.

¹⁰ Not all investments made by the Fund are anticipated to deliver green impact. However, these investments will support the Fund’s investment objective by providing the liquidity and returns profile required by the high net worth target investors. We will also seek, using commercially reasonable efforts, for these investments to be thematically aligned with the Green Purposes. The Investment Manager and Sub-Investment Managers will invest at least 80% of the 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 will 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 METI may enter into. Whilst the above examples give an indication of the proposed current focus of METI, there is no guarantee that METI 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 METI’s PPM Supplement.

¹¹ Assets may be acquired by METI at intervals over 18 months following METI launch, 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.  METI is expected to acquire these assets at the original cost incurred by Macquarie plus a 10% per annum risk premium. Compelling entry value proposition in embedded value of six seed assets, given they all have either been sourced bilaterally or have been created by MAM. Based on independent Valuation Reports prepared solely for the purpose of the Macquarie Infrastructure and Real Assets (Europe) Limited (“MIRAEL”). Seed portfolio warehoused by MAM balance sheet will be transferred below current market valuation. Additional investments being secured will not benefit from this. As anticipated, the Investment Manager reserves the right to transact at a cost on or around FMV however in the event of a material adverse change in the business causing the value to drop materially below the proposed transaction price.

¹² 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: https://www.coriogeneration.com/about.

¹³ These assets will be acquired from 3rd parties at the market price.

¹⁴ As at 31 December 2023.

¹⁵ As at 30 September 2023.

¹⁶ As at 31 December 2023.

¹⁷ There is no guarantee that the Fund will achieve its investment objectives. Target returns are hypothetical returns, not actual returns. The Target Net Return assumes (a) management fees and performance compensation charged to the Fund in accordance with the headline terms generally expected of the Limited Partnership Agreement of the Fund (b) offering and organizational expenses incurred directly by the Fund at the maximum capped amount indicated in the Memorandum (c) no management fee offset and (d) annual, ordinary ongoing partnership expenses as per the PPM Supplement. Actual expenses or costs of the Fund may vary significantly from such assumptions, which could result in a materially lower Net IRR. The Target Net IRR for individual investors in the Fund may differ depending on the size and timing of an individual investor’s Capital Commitment. Target returns being shown for information purposes only and should not be relied upon to make predictions of actual performance. Target returns are based on facts and assumptions that we believe to be reasonable. Targeted performance is not a guarantee, projection or prediction and is not necessarily indicative of future results. The scenarios presented are an estimate of future performance based on current market conditions and are not an exact indicator. What you will get will vary depending on how the market performs and how long you keep the investment. Future performance is subject to taxation which depends on the personal situation of each investor, and which may change in the future and may lead to a financial loss if no guarantee on the capital is in place.

¹⁸ Costs and returns may increase or decrease as a result of currency fluctuations.

¹⁹ The Fund is subject to Article 8 of the EU's Sustainable Finance Disclosure Regulation. The Fund will consider a number of factors in making investment decisions, including sustainability. Prospective Investors are invited to read the PPM Supplement, and to fully evaluate the characteristics and objectives of the Fund before deciding whether or not to subscribe for Interests. For further information on SFDR disclosures please refer to the relevant funds’ data room https://funds.s64capital.com/products/meti.

²⁰ Subject to local registration or notification. In each case, investors must also: (i) be a well-informed investor as defined in article 2(1) of the Luxembourg law of 23 July 2016 relating to RAIFs, as may be amended from time to time; and (ii) satisfy all additional eligibility requirements for the Fund from time to time as set out in the PPM Supplement and/or subscription agreement. U.S. persons are not eligible investors.

²¹ Certain financial intermediaries may charge up-front subscription fees and on-going sub-distribution fees. On-going sub-distribution fees will be charged on certain classes of shares only. Please see the PPM and PPM Supplement for further details.