HRL Morrison & Co (Morrison & Co) has held the first close of a new open-ended global infrastructure fund, the Morrison & Co Infrastructure Partnership (MCO IP), securing more than USD3 billion in fund commitments and co-investment capital from anchor investors.
HRL Morrison & Co (Morrison & Co) has held the first close of a new open-ended global infrastructure fund, the Morrison & Co Infrastructure Partnership (MCO IP), securing more than USD3 billion in fund commitments and co-investment capital from anchor investors.
MCO IP is designed to provide investors with access to major global themes driving multi-decade growth opportunities, including the energy transition and decarbonisation, climate change and digitisation of the global economy. MCO IP’s strategy builds on Morrison & Co’s outstanding track record in infrastructure investing.
Gordon Hay, Head of Core Infrastructure Funds at Morrison & Co, says MCO IP will provide investors with exposure to long-term, lower-volatility opportunities that are positively exposed to these themes.
“We are seeing a continued evolution in the infrastructure market globally, and as an asset class it continues to offer great benefits to investors.
“Morrison & Co has a long and exemplary track record in infrastructure investment, typically investing higher up the risk spectrum.
“MCO IP allows investors to benefit from that great capability, but applied to lower risk assets. The networks, sector expertise and operational capability we have developed through a long history of investing in higher growth, more operational assets are increasingly important to accessing opportunities and delivering superior value in more defensive investments.
“That is particularly the case in the energy transition and digitisation themes, where Morrison & Co has a rare level of expertise, having been an early investor in these sectors with great success. This means we have a strong pipeline of opportunities for MCO IP across our target geographies.”
MCO IP has a global investment mandate, principally targeting assets in North America, the United Kingdom, Europe, Australia and New Zealand, with a focus on the energy sector, other utilities, and data infrastructure. It has an objective to provide investors with an 8-10 per cent pa gross USD return, and will take a responsible investment approach, aiming to be carbon neutral by 2050.
Nicole Walker, Chief Commercial Officer at Morrison & Co, adds that infrastructure is becoming a more attractive asset class after showing resilience during the pandemic as interest rates stayed low, helping prompt an acceleration in demand from investors.
“We were especially pleased to secure continued support from our existing clients, which is testament to the high quality of our client relationships and the client experience we deliver.”
She also points out that responsible investing is core to Morrison & Co’s purpose and values.
“We believe that by integrating environmental, social and governance considerations at all stages of the investment cycle, there is an associated positive impact on investment performance for our clients. Accordingly, we develop responsible investment programs for each of our investment products, with ambitious targets, aiming to be a leading responsible investor.”
Paul Newfield, Morrison & Co’s incoming CEO, says that the successful launch of MCO IP will help accelerate the firm’s global expansion.
“Securing over USD3 billion in fund commitments and co-investment capital is a terrific show of support for our global investment capability. We are also attracting high calibre talent as we expand our presence in North America, Europe, Australia, Asia and New Zealand.”
