Morrison & Co secures $3 billion for global infrastructure fund

H.R.L. Morrison & Co has announced it has secured more than US$3 billion in fund commitments and co-investment capital from anchor investors for a new open-ended global infrastructure fund, the Morrison & Co Infrastructure Partnership (MCO IP).

 MCO IP is designed to offer investors access to global themes driving growth opportunities, including energy transition, decarbonisation, climate change and digitisation of the global economy. The fund’s strategy also leverages Morrison & Co’s track record in infrastructure investing.

Gordon Hay, Head of Core Infrastructure Funds at Morrison & Co, says MCO IP will deliver long-term and less volatile opportunities for investors that are positively exposed to the global themes.

“We are seeing a continued evolution in the infrastructure market globally, and as an asset class it continues to offer great benefits to investors,” he said.

“Morrison & Co has a long and exemplary track record in infrastructure investment, typically investing higher up the risk spectrum.

“MCO IP allows investors to benefit from that great capability, but applied to lower risk assets. The networks, sector expertise and operational capability we have developed through a long history of investing in higher growth, more operational assets are increasingly important to accessing opportunities and delivering superior value in more defensive investments.

Hay also said Morrison & Co has expertise with the themes of energy transition and digitisation after having been an early and successful investor in these sectors.

“This means we have a strong pipeline of opportunities for MCO IP across our target geographies.”

With a global investment mandate, MCO IP targets assets in North America, the United Kingdom, Europe, Australia and New Zealand and focuses on the energy sector, other utilities and data infrastructure. It aims to provide investors with an 8 to 10% p.a. gross return in USD and will take a responsible investment approach, aiming to be carbon neutral by 2050.

Nicole Walker, Chief Commercial Officer at Morrison & Co, said the resilience shown by the infrastructure asset class during the pandemic has made it more attractive and accelerated demand from investors.

“We were especially pleased to secure continued support from our existing clients, which is testament to the high quality of our client relationships and the client experience we deliver.”

Walker also said MCO IP reflects the firm’s core ESG purposes and responsible investing values.

“We believe that by integrating environmental, social and governance considerations at all stages of the investment cycle, there is an associated positive impact on investment performance for our clients.

“Accordingly, we develop responsible investment programs for each of our investment products, with ambitious targets, aiming to be a leading responsible investor.”