McMorgan & Company LLC, based in San Francisco, submitted a filing to the Securities and Exchange Commission (SEC) on July 9th declaring that it has raised $1.325 billion for its McMorgan Infrastructure Fund I, LP.The filling was signed by John Santaguida, CEO of McMorgan and Company.
The McMorgan Infrastructure Fund I, LP is a "feeder vehicle" into the Global Strategic Investment Alliance, a $10 billion consortium of investors, led by a $5 billion commitment from the C$60.9 billion (US$55.7 billion) Ontario Municipal Employees Retirement System, Toronto.
The alliance is managed by Borealis Infrastructure, an investment arm of OMERS, which will conduct all the due diligence and negotiations on behalf of the alliance
The alliance targets very large, core infrastructure assets capable of generating strong, consistent cash flow over the long term.
They charge 1% on invested capital only for the first 6 years with zero carried interest. Fees reduce up to 0.25% annually beginning at end of year 6 if fund does not achieve minimum return threshold of 5% net cash yield and 7% IRR.
The alliance targets gross cash returns of 7-9% annually, and gross IRR of 9-12%.