A range of predominantly UK corporate pension schemes, local authority funds and insurance companies have committed £2.7bn to the latest fundraising round for Macquarie infrastructure debt strategy, Macquarie Infrastructure Debt Investment Solutions (MIDIS).
Macquarie said it raised more than £220m via its second UK focused pooled fund targeting investments in inflation-linked debt in essential UK infrastructure businesses. A further £2.5bn of commitments was raised to invest alongside the fund through separately managed accounts.
The asset manager said many maturing defined benefit pension schemes and insurance companies have increased their exposure to inflation-linked infrastructure debt seeking to better match their inflation-linked liabilities - adding that investors have also been attracted to the prospect of higher returns than those offered by other assets with inflation protection and the lower risk profile of the asset class when compared to corporate debt.
MIDIS co-head Tim Humphrey said: "As we emerge from the COVID-19 pandemic, investment in infrastructure and green energy will form a key part of the UK's economic recovery. By mobilising UK institutional capital to invest in local infrastructure, we are helping essential infrastructure businesses meet the current and future needs of the communities they serve."
Since MIDIS was established by Macquarie in 2012, it has provided £4.8bn of capital from predominantly UK institutional investors to invest in the build-out of UK infrastructure.
The strategy has seen MIDIS make 70 debt investments in infrastructure businesses around the UK, providing flexible and cost-effective debt financing solutions for utilities, renewable energy, social and transport infrastructure operators.
Earlier this year, MIDIS announced an agreement to provide long-term debt facilities totaling £92.5 million to Tuntum Housing Association, a charitable registered housing provider in the East Midlands.
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