Pension schemes invest in Macquarie's infrastructure debt strategy

Macquarie Infrastructure Debt Investment Solutions (MIDIS) has raised £2.7bn from predominantly UK corporate pension schemes, local authority pension schemes and insurance companies in the latest fundraising for its UK infrastructure debt strategy.

Investors in Macquarie’s UK infrastructure debt strategy included BAE Systems Pension Scheme, Hertfordshire County Council Pension Fund and the Scottish Borders Council Pension Fund.

More than £220m was raised via MIDIS’ second UK focused pooled fund targeting investments in inflation-linked debt in essential UK infrastructure businesses, while a further £2.5bn of commitments was raised to invest alongside the fund through separately managed accounts.

The strategy has seen MIDIS, which was established in 2012, make 70 debt investments in infrastructure businesses around the UK.

Macquarie said many maturing defined benefit pension schemes and insurance companies had increased their exposure to inflation-linked infrastructure debt in order to better match their inflation-linked liabilities.

It claimed that many of these investors were 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, commented: “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.”

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