Macquarie raises $800M for infrastructure services fund
What's the deal? Macquarie Asset Management (MAM)Dealroom has a profile for this one. Try Dealroom → has raised about $800 million for the Macquarie Strategic Opportunities Fund (MSOF), a mid-market private equity vehicle, two sources familiar with the process said. The fund targets companies that provide services to infrastructure operators across the US and Europe, and is led by senior executives Hani Zogheib and Andrew Olinick.
The details: The 10-year fund targets net internal rates of return of around 20% and has raised some $700 million of coinvestment capital alongside the main pool. MAM is seeking $1.5 billion to $2 billion in core commitments altogether.
What's the endgame? MSOF has signed three deals so far. This month it agreed to buy North Carolina-based SI SolutionsDealroom has a profile for this one. Try Dealroom →, which checks asset integrity across nuclear, gas, petrochemicals, and industrials; last November it acquired Pennsylvania-based Potters IndustriesDealroom has a profile for this one. Try Dealroom →, a maker of engineered glass beads for road markings; and its first investment, in February last year, was Dallas-based DynaGrid HoldingsDealroom has a profile for this one. Try Dealroom →, which builds and upgrades transmission and substation infrastructure.
Who's backing it? MAM secured coinvestment capital including from UniSuperDealroom has a profile for this one. Try Dealroom → to help fund the Potters deal, bought from TJCDealroom has a profile for this one. Try Dealroom →, and the SI Solutions deal, bought from MidOcean PartnersDealroom has a profile for this one. Try Dealroom →.
The team: Zogheib heads MAM's private equity and adjacencies team in EMEA and has worked on core infrastructure investments including Arlanda ExpressDealroom has a profile for this one. Try Dealroom →, Bristol AirportDealroom has a profile for this one. Try Dealroom →, and Thames WaterDealroom has a profile for this one. Try Dealroom →. Olinick joined MAM last year after nearly 15 years at 3i, most recently as global head of business and technology services.
Why now? The fund looks at a broad range of services, from design and procurement for power and energy assets to vegetation management, one source said. "LPs want to invest in infrastructure. MSOF offers diversification for LPs who wants to go further up the risk curve," the source added.
The signal: The vehicle lets Macquarie — long known for owning core infrastructure outright — capture value from the companies servicing those assets, a higher-risk, higher-return slice of a sector where investor demand remains strong. MAM declined to comment.
Read more: ionanalytics.com
Image credit: Western Area Power Admin
