QIC is aiming to raise $1 billion for its second infrastructure debt fund, Infrastructure Investor understands.
The Queensland-based asset manager returned to market to launch its second debt fund in late 2023 and is targeting a first close before the end of 2024.
QIC Infrastructure Debt Fund II (QIFDII) is a 10-year closed-end vehicle with an option for two one-year extensions. It is targeting a gross IRR of at least 10 percent and an IRR net of fees and expenses of 8.5 percent.
The firm’s first fund, which raised $400 million from five Queensland government clients, is around 50 percent deployed and has generated a net IRR to date of 12-13 percent.
QIC declined to comment for this story, with a spokesman saying: “We are unable to comment on market speculation.”
QIFDII will make loans to assets across four broad sectors: energy, which encompasses renewable and thermal generation, midstream and energy transition assets; digital infrastructure, which includes telecommunications towers, cable networks, data centres and smart metering; transport and logistics, which includes airports, toll roads and ports; and regulated assets in water, gas, and electricity distribution and transmission.
The fund will make around 10-15 loans, with the majority being subordinated loans and the minority being unitranche loans.
Overall, QIC has more than $1 billion in assets under management and committed capital in private debt, with around $600 million in multi-sector private debt and a little more than $400 million in infrastructure. The figures include both commingled funds and separately managed accounts.
Recent transactions include a loan to a wholly-owned subsidiary of Porter Aviation Holdings in North America, as well as a loan to UK digital infrastructure business CityFibre.
The private debt team at QIC is led by Simon La Greca, who joined the business in late 2023 after stints at Ares Management and AMP Capital.
Another former AMP Capital executive, Evan Nahnsen, took on the role of head of private debt, infrastructure, in 2021 and is based in New York alongside principal Lindsay Scully. Nicholas Stockdale, formerly of Whitehelm and Barclays, is a partner and heads up the firm’s team in Europe from its London office.