Investment powerhouse QIC looks closer to home with $700m fund

QIC is looking at infrastructure investments closer to home for its new $700m fund that includes selling some US assets such as university car parks.

New focus for Queensland Investment Corporation (QIC).

Queensland Investment Corporation is pivoting its new infrastructure investment fund to Australasia after successfully raising $700m in the face of what has been described as challenging market conditions globally.

There are now hopes that figure could climb to $3bn upon final close of the fund, which City Beat hears is pivoting towards more investment in renewable-related assets.

QIC also believes the fund – known as QGIF II – will now have a higher minimum geographic allocation than expected to Australasia, where the push to renewables is gathering pace.

It had been anticipated QGIF II would have a 60 per cent allocation to Australasia, with the remainder invested elsewhere around the world. Now that mix is more likely to be 70-30.

According to a note of a meeting this month between an external asset consultant and the QIC infrastructure team, “the QGIF II was marketed as a global strategy with a greater focus on offshore markets – both to expand their offshore capital raising and deployment”.

But QIC is now looking to “pivot the strategy to focus on Australasia and energy transition” after what the note called a “disappointing” response in markets.

As the fund ramps up, Kirsten Whitehead (illustrated) has joined QIC’s infrastructure investment committee and assumed the position of partner portfolio management for the fund.

This new strategy for QIC includes acquiring a big stake in a smart metering business called Bluecurrent, which operates in both Australia and New Zealand.

QIC Infrastructure last year acquired 50 per cent of Bluecurrent, formerly Vector, as a seed asset for the fund.

The company owns around 2.5 million smart meters in Australia and New Zealand that are used to better manage power consumption.

City Beat has also learned that the investment powerhouse that has about 1000 staff has undertaken a global workforce recalibration after the fundraising effort for the fund.

About 10 investment and administration staff predominantly from QIC’s US and UK offices have recently left the business from a staff of about 165 in the infrastructure team.

The meeting note claims the jobs cuts are part of a “pivot” towards increased investment in Australian infrastructure and the divestment of key assets in the US, including car parks located at universities.

“This pivot in strategy has resulted in 10 people departing QIC predominantly in the US and UK offices,” the note says.

“The staff impacted are both investment professionals and admin staff.”

QIC’s recent asset divestments in the US have included the MasParc and CampusParc university paid cars parks in Ohio and Boston.

CampusParc, which is about to settle for $1.165bn, was the first long-term lease and concession for a North American university parking system, an agreement reached with The Ohio State University in 2012.

QIC also recently divested the Long Beach Courthouse for about $120m.

The divestments are described as “strategic and aligned to client-endorsed strategy in the US”.

C Queensland Investment Corporation looking closer to home.