CalPERS Will Invest $1 Billion in Australian Infrastructure

CalPERS is teaming with Australia-based investment group QIC to invest $1 billion in infrastructure around the world.

Most of the money will be invested in Australian infrastructure, but QIC will also look at New Zealand and other Asia Pacific countries.

More from the Sydney Morning Herald:

CalPERS has asked Brisbane-based QIC to find, create and manage its first portfolio of Asia Pacific infrastructure assets.

More than half of the $1 billion will be invested in Australia and New Zealand, with Japan, South Korea and Singapore also targeted as key investment markets.

“Australia is seen as one of the most attractive infrastructure markets in the world,” said Matina Papathanasiou, deputy head of global infrastructure at QIC. “There is still quite a lot of deal flow in the market, it’s in the tens of billions.”

CalPERS is the first US pension fund to become an infrastructure investment client of QIC.

QIC chief executive Damien Frawley said CalPERS, which he described as a “signature client”, wanted to benefit from opportunities created by Asia’s urbanisation and rising living standards.

[…]

CalPERS will invest in transportation assets as well as water, power and renewable assets. It will also consider public private partnerships with so-called “availability payments”, which reduce the risk taken by private investors.

QIC will look at opportunities created by the resources downturn, with energy companies expected to sell assets to strengthen their balance sheets.

CalPERS is the U.S.’ largest public pension fund and manages $300 billion in assets.

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