UK corporate pension schemes, local authority pension schemes and insurance companies have ploughed £2.7 billion into Macquarie Infrastructure Debt Investment Solutions (MIDIS), in the latest round of fundraising for its UK infrastructure debt strategy.
MIDIS raised more than £220 million via its second UK-focused pooled fund targeting investments in inflation-linked debt in essential UK infrastructure businesses. A further £2.5 billion of commitments was raised to invest alongside the fund through separately managed accounts.
Many maturing defined benefit pension schemes and insurance companies have increased their exposure to inflation-linked infrastructure debt to better match their inflation-linked liabilities, Macquarie said.
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.
Tim Humphrey, co-head of MIDIS, 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 in 2012, it has provided £4.8 billion of capital from predominantly UK institutional investors to invest in the build-out of UK infrastructure.