Specialist alternative asset manager Infrastructure Partners Investment Fund (IPIF) has appointed Kurt Lemke as the Head of Research and Portfolio Construction.

Mr Lemke has 20 years of experience in the financial services industry, including more than a decade in unlisted investment and economic forecasting.

Prior to joining IPIF Mr. Lemke was Group Director at Hasting Funds Management where he led portfolio construction and strategy.

IPIF, through the appointment of Mr Lemke, aims to lead the unlisted infrastructure investment market away from largely subjective decision-making processes to a more quantitative-based approach.

Commenting on the hire, IPIF Chief Executive Officer, Nicole Connolly, said: “We are excited to have Kurt come on board with us. He brings a wealth of experience and will be at the forefront of portfolio construction and research for IPIF and our investors.

“IPIF seeks to help better educate non-institutional investors about unlisted infrastructure and where it fits in their asset allocation and portfolio construction. This is more important than ever given the uncertain market outlook and surging equity markets.”

Ms Connolly added: “Unlisted infrastructure assets and portfolios are also known to be resilient throughout economic cycles, even shocks such as the GFC, due to inelastic demand for essential services – making them extremely attractive investments given ongoing uncertainties in domestic and global economies.”

IPIF is a leader in enabling self-managed super funds and high net worth individuals to access the unlisted infrastructure asset class, which has traditionally only been accessible to larger institutional investors.

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Jonathan van Rooyen has been appointed Chief Investment Officer of IPIF and will be responsible for the IPIF Core fund investments, as well as new  business opportunities.

He was previously Executive Director and Portfolio Manager at Hastings Funds Management, where he was responsible for establishing the firm’s Asia footprint. He also managed Hasting’s $2.6 billion unlisted infrastructure fund, which owns stakes in the Cairns, Gold Coast and Perth airports, the Port of Newcastle and the recently privatised NSW land titles registry business. Prior to that, he was Executive Director (Partner) at KPMG.  Jonathan has also been a non-executive director of Queensland Airports, Envirogen, Interlink and Statewide Roads as part of his roles at Hastings.

Sean Kim has been appointed as Senior Investment Analyst. He was previously a senior associate at Hastings Funds Management. Prior to that he was a senior analyst at National Australia Bank, and a corporate tax associate at KPMG in Singapore.

IPIF is the only multi-manager platform for self-managed super funds and high net worth individuals to access the unlisted infrastructure asset class.

In welcoming the appointments, IPIF Founder and Chief Executive Officer, Nicole Connolly, said: “Demand for the IPIF Core fund and its reliable and consistent income yield has been strong, given the essential nature of infrastructure assets. Demand has been particularly strong from high net worth private investors as well as SMSF trustees, financial planners and wealth managers.”

The new appointments caps of what is already a big year for the Manager, and comes on the back of Ms Connolly being named as a Finalist in the Women in Finance Awards for Entrepreneur of the Year.
IPIF Core currently has $135m in AUM.

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Nicole Connolly

Independent funds management group Infrastructure Partners Investment Fund (IPIF) is embarking on its next round of capital raising, with a target $70 million to be raised by the end of June.

The group is seeking to expand the range of infrastructure asset exposures in its flagship fund, IPIF Core, which is designed for high-net-worth individuals, self-managed super funds (SMSFs) and smaller institutional investors.

A priority allocation will be reserved for existing investors as well as allowing for potential new investors in the fund.

IPIF Executive Director, Investments, Nicole Connolly said while there is high demand for infrastructure investments, unlisted infrastructure had been notoriously difficult to access for smaller investors.

“IPIF Core was created in early 2015 in response to this demand, opening up an opportunity for smaller investors to benefit from the attractive mix of income, capital growth and stability that infrastructure assets can provide, in a low-cost structure,” Ms Connolly said.

Ms Connolly added that the Australian market was presenting significant opportunities for private investment in infrastructure. “Australia’s governments are facing increasing fiscal gaps as the population ages. In addition, our capital cities are expected to grow by 11.8 million people in the next 30 years[1].

“Private sector investment in infrastructure will therefore be key to contributing to economic growth in Australia, easing the pressure on our larger cities and on the public purse,” Ms Connolly said. “Additionally, the government is getting savvy with how it works with private sector investors to address the challenge. The asset recycling scheme implemented by Mike Baird, former Premier of NSW in 2014 is testament to this.”

Investment in ‘marquee’ assets

IPIF Core is seeking to raise new equity to broaden exposure to marquee infrastructure assets.

“The capital raise provides an opportunity to further diversify the portfolio with exposure to high-quality and essential infrastructure assets including Melbourne Airport, PowerCo in New Zealand and Reliance Rail,” she said.

A focus on mature and stable assets

IPIF Core’s investment strategy focuses on providing exposure to an existing, diversified portfolio of mature, stable and cash-generating infrastructure assets.

The current portfolio provides exposure to transport assets including Perth, Adelaide, Melbourne and Brisbane Airports and Interlink Roads, and a number of energy and utilities assets including TransGrid, South East Water and Phoenix Natural Gas.[2]

Ms Connolly said IPIF Core, which has delivered performance of 9.5% a year and attracted $100 million in funds under management since inception in January 2016, was now ready to enter its next phase of growth.

“We are pleased with the progress of IPIF Core to date and the level of interest we have received from direct investors and smaller institutional funds. The capital raising gives us the opportunity to respond to high levels of investor demand for access to this attractive asset class,” she said.

IPIF Core is owned by its three Directors – Ms Connolly and Non-Executive Directors Hugh Gurner and Steve Merlicek. The team has a combined 80 years of experience in the superannuation and funds management industry, with extensive experience in the design, implementation and management of infrastructure investments.

The Fund is open to wholesale and sophisticated investors and the minimum investment is $50,000. Copies of the IPIF Core information memorandum can be accessed at www.ipif.com.au or www.vascofm.com

[1] Infrastructure Australia: Future cities, planning for our growing population, Feb 2018

[2] These asset exposures are via IPIF Core’s investment in Utilities Trust of Australia (UTA), a Morrison & Co managed vehicle (from 1 July) and the Global Diversified Infrastructure Fund (GDIF), a Colonial managed entity.

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