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Morrison raising new USD 2bn fund

Morrison expects to reach first close on a new USD 2bn Value Add fund by about mid-year, two sources said.

The New Zealand-based infra fund manager should be able to establish anchor investor commitments for about a third of the total within a month for the global fund, followed by a first close of about USD 1bn later this year, they said.

The fund will target equity investments of about USD 300-500m.

First close will likely be reached by May or June, one of the sources said, adding the investors being targeted largely include Australian and NZ LPs with investments made globally.

Morrison Value Add II SCSp was registered with the Luxembourg Registre de Commerce et des Sociétés in December 2023.

The fund is called Value Add II as it is modelled on Morrison’s Trans-Tasman listed infrastructure company, Infratil, the sources said. However, Value Add II is a 10-year, closed ended, unlisted fund that will target slightly smaller deals than Infratil, they added.

Infratil, established by Morrison in 1994, forecasts returns over 10 years and targets an annual return after tax of 11-14%, according to its website.

Its investments range across core, core-plus and “growth” assets with expected annual returns of 8-10% for core infrastructure, 10-15% for core-plus and 15-25% for growth.

Infratil’s existing investments include Canberra Data Centres in Australia; renewables developers Longroad in the US, Galileo in Europe and Gurin in Asia; and telco One NZ.

One of its first investments was Wellington Airport in New Zealand, in which it still owns a stake.

In 2021 Infratil sold Australian and NZ renewables developer Tilt Renewables to the PowAR consortium – including QIC, AGL Energy and the Future Fund – and Mercury NZ.

A spokesperson for Morrison did not respond to a request for comment.