Australian financial services provider Macquarie Group and China Everbright, a diversified financial conglomerate, have entered into a joint venture to establish two funds to invest in
Australian financial services provider Macquarie Group and China Everbright, a diversified financial conglomerate, have entered into a joint venture to establish two funds to invest in infrastructure businesses in Greater China with a focus on core infrastructure.
The first fund will be open to non-People’s Republic of China, non-retail investors targeting Greater China core infrastructure opportunities, primarily in the toll road, airport, renewable energy, water and wastewater, port and rail sectors.
The second fund will be a domestic investment vehicle admitting renminbi investors and its establishment is subject to PRC law and approvals.
It is proposed for the two funds to co-operate and invest alongside each other and have identical mandates. The funds will be managed by Macquarie and Everbright through jointly owned asset management companies.
The international and domestic funds are seeking to raise USD1.5bn in aggregate, with each targeting a first close in 2010. Macquarie and Everbright have committed to jointly contribute up to USD100m as sponsors of both funds.
David Russell, Macquarie’s head of private equity for Asia and Greater China, says: "The combination of Macquarie’s international infrastructure asset and funds management expertise and Everbright’s China experience and know-how will create a powerful investment partnership in China, especially in generating attractive investment opportunities. As a manager of infrastructure assets, we appreciate that governments, potential partners and vendors are attracted to managers with a history of responsible asset management and depth of expertise, together with an understanding and sensitivity to local issues."
