NZ clients are lined up to invest in a just-launched Morrison & Co unlisted infrastructure fund when it opens for a second round with some capacity still left before the first capital-raise closes.
Nicole Walker, chief commercial officer at Morrison & Co, said the manager had secured support for the first US$3 billion tranche of its Infrastructure Partnership Master Fund mainly from Australian institutional investors but was still open for subscriptions.
“We have interest from NZ clients including from high net worth investor aggregator groups,” Walker said, with further fund-raisings planned.
“The idea is that we would have four to six underlying assets in place before we raise more money. Once we have deployed the (US]$3 billion then will open the fund up again for new capital.”
She said the new Luxembourg-domiciled fund is Morrison’s first truly global vehicle with underlying investments to be split a third each-way across Australia/NZ, Europe and the US.
“It’s a diversified fund that will focus on our three key areas of expertise: digital, renewable energy and social infrastructure,” Walker said. “We’re looking at opportunities now and already have a seed asset in line.”
Despite intensifying competition for infrastructure assets – in both listed and unlisted markets – she said Morrison retains unique advantages in finding assets through the firm’s sector specialists and deep industry relationships.
“We don’t compete at auctions,” Walker said. “Most of our assets are sourced on a proprietary basis.”
The fund targets an annual gross return of 8-10 per cent in US dollar terms with an additional aim to achieve carbon neutrality by 2050.
“And we plan to open up the fund to supply liquidity every year,” she said.
In a statement, incoming Morrison chief, Paul Newfield, said the new fund would further spread the firm’s international reach beyond Australasia.
“Securing over US$3 billion in fund commitments and co-investment capital is a terrific show of support for our global investment capability,” he said.
Newfield is set to replace Marko Bogoievski at the end of this year, ending a 13-year reign for Morrison’s second-ever CEO.
Bogoievski took the helm in 2009 after founding chief, Lloyd Morrison, stepped down due to illness.
The business has grown rapidly in recent years, winning support from institutional investors in Australia and NZ, in particular.
Walker said since she joined in 2017, Morrison’s assets under management have surged from A$6 billion to the current high of A$22 billion.
“We are also attracting high calibre talent as we expand our presence in North America, Europe, Australia, Asia and New Zealand,” Newfield said in the release.
As part of the global push, the Sydney-based Walker is booked to relocate to Singapore in a month or so to head a new Morrison outpost.
The group opened a London office three years ago followed by a New York branch earlier this year. In addition to its home country locations in Wellington and Auckland, Morrison has long-established offices in Sydney and Melbourne as well as a small representation in Hong Kong.