Macquarie Infrastructure Debt Investment Solutions launches second UK inflation-linked infrastructure debt fund

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Macquarie Infrastructure Debt Investment Solutions launches second UK inflation-linked infrastructure debt fund

Macquarie Infrastructure Debt Investment Solutions has recently revealed that it is launching its second fund mandated to invest in UK inflation-linked infrastructure debt.

The launch follows Macquarie Infrastructure Debt Investment Solutions successful £829 million close of the first ever UK inflation-linked infrastructure debt fund, Macquarie Infrastructure Debt Fund (UK Inflation Linked), which is now in the latter stages of deployment.

The Macquarie Infrastructure Debt Fund (UK Inflation Linked) 2 is targeted at UK pension schemes seeking to invest a minimum of £10 million into debt to match their long-dated inflation-linked liabilities over a 30-year term.

Similar to its predecessor, this fund will follow a buy and hold investment strategy which aims to achieve returns in excess of traditional liability matching strategies. This appeals to pension schemes’ increasing appetite to use illiquidity premium as a source of returns, rather than the more traditional bar-bell strategies
comprising of large allocations to equity and gilt investments. 

Macquarie Infrastructure Debt Investment Solutions identified an opportunity in early 2014 for pension schemes to lend directly to UK infrastructure businesses in inflation-linked form. The inflation linked fund removed the barriers to pension scheme participation and the success of the first pooled fund has proven the scale of the opportunity.

Tim Humphrey, Managing Director of MIDIS, said:

“The launch of our second fund of this type reflects how an inflation-linked debt investment strategy is an effective solution for UK pension schemes needing to de-risk, deliver returns and achieve portfolio efficiencies. This demand from institutional investors is met by the supply of UK infrastructure borrowers seeking flexible and cost-effective debt funding solutions - which mitigates the execution risk posed by public markets and avoid banks’ variable Macquarie Group of Companies appetite for infrastructure finance. We look forward to receiving similar investor enthusiasm for MIDIS’ second inflation-linked infrastructure debt fund in the UK.” 

List of country news

Country news

  • April 26, 2016

    HICL Infrastructure acquires 30% interest in the M1-A1 Link Road PFI from Balfour Beatty

    HICL Infrastructure Company Limited, the listed infrastructure investment company advised by InfraRed Capital Partners Limited, has announced the acquisition of a 30% interest in the M1-A1 Link Road (Lofthouse to Bramham) DBFO Road Project from Balfour Beatty plc for £14.5 million (US$21 million). Read more
  • April 25, 2016

    PPP tender launched for new theatres at Warwickshire hospital

    University Hospitals Coventry and Warwickshire NHS Trust have launched a tender process to develop new theatres at Warwickshire hospital in UK. Read more
  • April 20, 2016

    EIB backs United Utilities with GBP 500m

    The European Investment Bank has agreed to provide US$717 million to support investment across the north-west of England by United Utilities. The 18 year loan from Europe’s long-term lending institution will be used to finance improvements to the region’s water and wastewater networks as part of United Utilities’ GBP 3.5 billion capital investment program for the 2015 to 2020 regulatory period. Read more
  • April 15, 2016

    Macquarie hires Nomura for sale of Thames Water

    Macquarie, a global investment banking and diversified financial services group, has hired investment bank Nomura for the sale of its 26% stake in UK Thames Water. Read more
  • April 15, 2016

    Amy Aponte joins Balfour Beatty Campus Solutions Business Development Team as Vice President

    Balfour Beatty Campus Solutions, announced that Amy Aponte has joined the company as a Vice President in its business development group. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.