Challenger infrastructure gets its fill
Kerry Packer-backed Challenger Financial Services has raised all of the money it wanted for its first infrastructure fund in what was a relatively short three week offer period.
The Challenger Infrastructure Fund (CIF), which will start trading on the Australian Stock Exchange on August 19, raised an anticipated $630 million, half of which was provided by annuity business Challenger Life.
About 60 per cent of the remaining $315 million came from retail investors and 40 per cent from institutional investors through the initial public offering which began in late July.
Having already acquired three utilities in the United Kingdom through consortiums with Macquarie Bank and Chinese retail giant Cheung Kong Infrastructure Holdings, CIF will invest in a range of additional infrastructure assets in Australia, North America and Europe.
CIF managing director Steve Bickerton, who said the successful raising was an endorsement of the fund and the people who run it, has not ruled out joining forces again with Macquarie to purchase more assets.
Investors will get another opportunity to invest in CIF in 12 months time, when the $615 million cap will be lifted and Challenger Life’s $315 contribution gradually diluted.
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
