Queensland Investment Corporation (QIC) has cut the planned size of its QIC Global Infrastructure Fund II (QGIF II) from its original USD 3bn, according to three sources.

The new target is USD 2bn, one of the sources said.

The reduction reflects the fund’s pivot towards Australasian infrastructure, a second source added.

Launched in early 2023, QGIF II initially had a global mandate before potential investors persuaded QIC to focus on its home markets, a source previously said.

The latest flagship fund aims to reach a final close by March 2026, the sources added.

QIC has raised approximately USD 1.4bn so far to go into the fund, according to one of the sources. More than 10 investors from Australia, Korea, Japan and the US have participated in the fund raising, he said.

An Australian QGIF fund I investor, closed a commitment to the second fund last week, the same source said.

QIC declined to comment.

QGIF II recently announced investments in Australian renewables developers Tilt and EDPR Australia. It is seeded with a 50% stake in New Zealand and Australian smart metering business Bluecurrent (formerly Vector Metering), an acquisition completed in June 2023.

The new fund will be 70% allocated to Australia’s energy transition across renewables, transport, and utilities, with the remainder for OECD countries globally. It will write equity cheques ranging from USD 50m to USD 200m.

QIC plays a prominent role in the Queensland state government’s latest energy roadmap to drive private sector investment in new energy generation and firming projects.