Australia's QIC raises an initial $528m for global infrastructure fund

The investors were not named but QIC CEO Damien Frawley said they included an Asian sovereign wealth fund and a major Australian pension scheme. The fund is an extension of the infrastructure strategy that has been available to separately managed account clients since 2006.

Paul Costello, the inaugural CEO of both Australia's Future Fund and the New Zealand Superannuation Fund, has been appointed independent chairman of QIC's global infrastructure investment committee. Costello, who started his role at QIC last year, will be joined on the committee by members of the global infrastructure team, including founders Ross Israel and Matina Papathanasiou.

With a host of foreign and domestic players looking to participate in the wave of brownfield infrastructure privatizations expected in Australia, Costello said investors should be wary of overbidding for assets, the Sydney Morning Herald reported.

QIC has more than $57.9 billion in funds under management globally. Its infrastructure portfolio comprises 10 direct investments worth $4.4 billion, spanning transport, utilities and public-private partnership assets. It has realized $5.8 billion in proceeds for clients, including the exit of the Queensland Motorways portfolio last year to a group of investors.

The group recently teamed up with Canada Pension Plan Investment Board (CPPIB) and toll road operator Transurban Group to support Sydney's A$2.9 billion ($2.3 billion) NorthConnex tunnel project. The investors are packaging the existing Westlink M7 toll road - which they already own - in with the still-to-be-built NorthConnex. By combining brownfield and greenfield assets, the project risk is reduced.

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• Topics
• Infrastructure
• Infrastructure
• Australasia
• Fundraising
• Infrastructure
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• QIC