Macquarie emerges as one of the top 25 fund managers in the world

Macquarie Group’s European infrastructure fund has offloaded a near 70pc stake in one of Italy’s biggest gas pipeline operators.

Macquarie Group CEO Shemara Wikramanayake

Macquarie Group’s flagship European infrastructure fund has offloaded a near 70 per cent stake in one of Italy’s biggest gas pipeline operators, Società Gasdotti Italia.

Macquarie Infrastructure and Real Assets arm has reached a deal to sell its 69.4 per cent interest in SGI to Ontario Teachers’ Pension Plan Board, for an undisclosed amount.

The pipeline was held under Macquarie European Infrastructure Fund, which invests in major infrastructure assets from rail, energy and airport infrastructure on behalf of superannuation funds around the world. The sale comes amid a shift in Europe toward low carbon energy sources.

Macquarie’s MIRA arm has nearly $140bn in funds under management. In the six months to end-September it raised a further $9bn in new funds and made a little over $8bn in new investments including infrastructure and real estate.

SGI is the largest independent gas transmission operator in Italy, with a 1700-kilometre high pressure pipeline network transporting natural gas to key industrial and urban centres.

Macquarie’s infrastructure arm acquired SGI in a consortium with Swiss Life in 2016. Macquarie said it has since supported the growth of the company through the construction of the San Marco-Recanati and Larino-Chieti pipelines as well as the development of a gas transmission network in Sardinia.

“We are proud to have supported SGI as it has increased investment in its network infrastructure to ensure the continued delivery of safe and reliable energy to communities across Italy,” said Macquarie Infrastructure’s senior managing director Jiri Zrust.

“SGI is helping to shape the future of Italy’s energy networks and we are delighted to have found a new owner who will oversee the next stage of its development”.

Ontario Teachers’ senior managing director Dale Burgess said the acquisition is line with the fund’s strategy to acquire core, regulated utility assets that provide essential services and have highly predictable cash flows.

“We believe that SGI’s network is well-positioned to benefit from and enable the shift to low- or zero-carbon alternatives like green hydrogen and biomethane to support broad decarbonisation efforts in Italy and Europe,” Mr Burgess said.

He noted SGI has already launched a study to assess the feasibility of transitioning its gas network from natural gas to renewable gases.

The sale comes just weeks after Macquarie launched a friendly $2.3bn move on US-based asset and wealth manager Waddell & Reed.

The transaction marks the first major strategic play under chief executive Shemara Wikramanayake and follows Macquarie’s post-GFC playbook which saw the homegrown investment bank swoop on discounted fund managers. It will also see Macquarie emerge as one of the top 25 fund managers in the world.

Ms Wikramanayake reaffirmed Macquarie’s acquisitive stance, saying it was seeking to capitalise on the COVID-19 market disruption and was actively looking for opportunities to deploy its $9bn war chest.

At the same time externally managed funds in its asset management unit — which houses a stable of infrastructure funds — has $24.1bn to deploy.

Ms Wikramanayake said while Macquarie was positioning itself to make more acquisitions, it would not rush if asset prices were too high.

Macquarie closed on Thursday at $140.11, up 0.9 per cent.