Macquarie Seeks to Raise $7 Billion for Americas Infrastructure Fund

(Bloomberg) -- Macquarie Group Ltd.'s asset-management arm is planning to raise at least $7 billion for a new fund dedicated to making infrastructure bets in the Americas, according to people with knowledge of the matter.

The Australian firm is set to formally begin fundraising for the vehicle, known as Macquarie Infrastructure Partners VI, in coming months, said the people, who asked not to be identified discussing private information. A Macquarie spokesman declined to comment.

Macquarie raised $6.9 billion in July for Macquarie Infrastructure Partners V, exceeding a $5 billion target, and said it would primarily focus on transactions in the communications, transportation, waste management, energy and utilities sectors.

So far, MIP V's investments include a 50% stake in a portfolio of Massachusetts hospitals; an investment in LRS, a waste and recycling company; RailUSA, the operator of Florida Gulf & Atlantic Railroad and Grenada Railroad; and telecommunications provider Cincinnati Bell.

Investors in MIP V include the Teachers' Retirement System of the State of Illinois, the North Dakota State Investment Board and the New Mexico State Investment Council, according to data compiled by Bloomberg.

Spurred by investor demand for stable returns that aren't correlated to whipsawing markets, infrastructure-focused funds are collectively expected to raise more capital than any other alternative-asset class in the next five years, according to data provider Preqin. As part of that growth, infrastructure-related assets under management may overtake real estate by 2026, Preqin said.