Macquarie targets wealth investors with infra credit BDC
Macquarie Asset Management is seeking to expand wealth investors’ access to private infrastructure credit by adopting a business development company (BDC) structure for one of its funds.
According to a recent SEC filing, the Macquarie Infrastructure Income Opportunities Fund has elected to be regulated as a BDC.
The fund will invest primarily in private credit through primary originations and secondary purchases of loans, bonds, leases, structured products and other asset-backed investments, according to the filing.
The move opens up a segment of the private markets that has traditionally been dominated by institutional investors, as managers look to broaden access to private infrastructure credit among high-net-worth investors.
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According to the filing, the fund will invest across areas including transportation leasing platforms, specialist environmental and waste services, energy transition assets such as battery storage, education facilities and emergency services.
Despite being regulated as a BDC, the vehicle will remain a private, long-term fund rather than becoming publicly listed, the filing said. It will be offered primarily to accredited investors through private placements, meaning investors should expect limited liquidity and potentially longer holding periods.
The news comes as retail-focused BDCs have recorded historic levels of redemptions in the first two quarters of the year, driven by concerns over private credit lending standards and growing fears that artificial intelligence could disrupt the software sector, where the asset class has significant exposure.
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The Macquarie fund will retain flexibility to invest up to 30 per cent of its assets outside the US while continuing to comply with BDC requirements, the filing said.
Macquarie Asset Management’s Credit & Insurance division manages approximately $162bn (£120bn) in assets, while its private credit business has completed around $25bn in essential-asset financings since inception.
