Macquarie raises $625m for Philippines’ first infra fund

Macquarie's infrastructure and real assets division is an investor in the vehicle and will also serve as manager. Other investors include Government Service Insurance System (GSIS), the largest pension fund in the Philippines, Dutch pension fund asset manager APG, and the Asian Development Bank (ADB).

"The Philippines requires significant investment in infrastructure to meet the needs of what is one of the youngest and fastest growing populations in Asia," said Frank Kwok, a senior managing director for Macquarie's infrastructure and real assets operations in Asia. "With partners such as GSIS, APG and the ADB we believe PINAI will be an important participant in supporting the delivery of infrastructure projects, which will be critical to sustaining the strong growth of the Philippines.

The fund will invest directly in infrastructure businesses and projects through equity and equity-like instruments. Target investments are likely to be a mix of brownfield and greenfield projects across the infrastructure sector, including transport, power, renewable energy, water and telecom.

According to Robert G. Vergara, president and general manager of GSIS, Macquarie won the mandate to manage the fund after a rigorous selection process that lasted nine months.

Philip Erquiaga, director general for ADB's private sector operations department, added that he hopes PINAI will encourage more private equity funds to participate in the Philippines, boosting the development of domestic capital markets.

Macquarie's infrastructure and real assets division operates infrastructure funds, other real asset vehicles and customized accounts globally, with more than $94 billion under management. In Asia-Pacific, outside of its home country of Australia, Macquarie has launched infrastructure funds in China, India and South Korea.

Macquarie Everbright Infrastructure Fund, a joint venture with local financial services provider China Everbright, reached a first close of $769 million in June 2011 and is targeting $1.5 billion in total. The Macquarie Korea Opportunities Fund II and India-focused Macquarie SBI Infrastructure Fund II are also currently in the market, each targeting at least $1 billion.

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• Topics
• Infrastructure
• Infrastructure
• Southeast Asia
• Macquarie Group
• Infrastructure
• Southeast Asia
• Philippines
• Fundraising