QIC has announced the final close of the QIC Global Infrastructure Fund (QGIF), which achieved a total of AUD2.35 billion (US$1.8 billion) of capital commitments over an 18-month period.

The AUD2.35 billion represents the hard-cap for the fund-raise and also exceeds the fund’s target of AUD1.75 billion (US$1.3 billion).

QGIF is a pooled unlisted investment vehicle that seeks to provide institutional investors with access to attractive, risk-adjusted returns through long-term exposure to a diversified portfolio of global infrastructure assets.

The investors benefit immediately from the fund’s interests in three attractive infrastructure assets. The assets, secured since the investment period commenced in August 2015, are Lochard Energy (which owns and operates the Iona Gas Plant), the Powering Australian Renewables Fund (PARF, a joint investment with AGL and Future Fund) and the Port of Melbourne.

QGIF grew out of QIC’s strategy and gives investors access to QIC’s Global Infrastructure investment capabilities, focused on its sector-centric, active-core approach.

The fund has secured commitments from a range of institutional investors including Hostplus, one of Australia’s largest superannuation funds, an Asian sovereign wealth fund and one of China’s leading insurers.

QIC’s CEO Damien Frawley said:

“QGIF’s successful fund-raise underscores strong institutional investor support for alternative investments as well as QIC’s strategic focus on diversified alternatives.”

Ross Israel, Head of QIC Global Infrastructure, said:

“I’m delighted to announce the final close of QGIF, following a successful first close in August 2015. It endorses our ability to secure through focused origination and execution processes high quality infrastructure assets and builds a strong investment pipeline for our investors.”

“We are very pleased these investors have also supported QGIF’s innovative fund structure and the platform it presents for co-investment. We believe it is a further step in the continuing evolution of institutional infrastructure fund structures.”