Macquarie Infrastructure Debt Investment Solutions (MIDIS) is launching its second fund to invest in UK inflation-linked infrastructure debt.
The launch follows the close at £829m (€1.05bn) of a previous UK inflation-linked infrastructure debt fund, which is being deployed.
The Macquarie Infrastructure Debt Fund 2 targets UK pension schemes seeking to invest a minimum of £10m in debt to match long-dated inflation-linked liabilities over a 30-year term.
Tim Humphrey, managing director at MIDIS, said: “The launch of our second fund of this type reflects how an inflation-linked debt investment strategy is an effective solution for UK pension schemes needing to de-risk, deliver returns and achieve portfolio efficiencies.”
The fund will follow a buy-and-hold investment strategy aiming to achieve returns in excess of traditional liability-matching strategies.
The company said the strategy would appeal to pension schemes’ increasing appetite to use illiquidity premium as a source of returns rather than “more traditional bar-bell strategies comprising large allocations to equity and gilt investments”.