Macquarie Launch Press Release
NexGen Financial Limited Partnership files preliminary prospectus for Macquarie NexGen Global Infrastructure Corporation
TORONTO: NexGen Financial Limited Partnership (“NexGen” or the “Manager”) is pleased to announce that it has filed a preliminary prospectus across Canada qualifying the initial and continuous public offering of Macquarie NexGen Global Infrastructure Corporation (the “Fund”), a closed-end investment fund for which NexGen will be the Manager. Macquarie Alternative Investments Limited (“MAIL” or Investment Manager) has been retained by NexGen to manage the Portfolio.
Offering Price: The offering price is $10.00 per share and the minimum purchase quantity is 200 shares ($2,000).
Investment Objectives: The Fund will provide investors with exposure to an actively managed portfolio consisting primarily of publicly listed infrastructure issuers and to a limited extent private infrastructure funds.
The Fund’s investment objectives are to:
I. provide tax efficient monthly distributions which are targeted to be $.05 per share, representing an annual yield of $0.60 per share, or 6% based on the original price of $10.00 per share
II. maximize the total return of the Fund
Monthly distributions are expected to consist primarily of return of capital and may include capital gains dividends.
Investment Portfolio:
The Fund is designed to provide investors with exposure to the total return of an actively managed portfolio (the “Portfolio”) consisting primarily of publicly listed equity securities of global issuers that own or operate infrastructure assets. Infrastructure assets include but are not limited to:
- Transport assets (toll roads, airports, seaports, rail);
- Energy assets (gas and electricity transmission, distribution and generation);
- Water assets (pipelines and treatment plants);
- Telecommunications assets (broadcast, satellite and cable); and
- Social assets (hospitals, schools, prisons).
It is expected that up to 10% of the Portfolio will consist of unlisted private infrastructure funds when such investment opportunities arise, although the Portfolio may consist of up to 20%. The Portfolio may include securities of infrastructure vehicles managed or advised by one or more members of the Macquarie Group (“Macquarie”). Macquarie comprises Macquarie Bank Limited, the leading Australian investment bank, its subsidiaries and affiliates worldwide and the funds or companies that they manage.
Investment Manager: Macquarie Alternative Investments Limited (“MAIL” or “Investment Manager”) has been retained by NexGen to manage the Portfolio as investment manager of the Fund. MAIL is an indirect wholly owned subsidiary of Macquarie Bank Limited. The Macquarie Group is a diversified international provider of specialist financial and investment banking services around the world with total assets under management of approximately $127 billion as of September 30, 2006. Macquarie employs more than 9200 people world wide in 24 countries including Canadian offices in Toronto, Vancouver, Montreal, Winnipeg and Calgary.
As early as 1990 Macquarie recognized the potential of infrastructure as an emerging asset class that offers attractive long-term investment characteristics. Today, Macquarie is recognized as a global leader in infrastructure acquisition and funding as well as asset and funds management. Currently Macquarie manages in excess of $35 billion of equity in infrastructure and adjacent sectors, primarily through its IB Funds division as well as by other Macquarie funds management affiliates.
Major infrastructure sectors that Macquarie specializes in include toll roads, water utilities, electricity and gas transmission and distribution networks, broadcast towers and social infrastructure.
The Manager: NexGen will be the manager of the Fund. NexGen was founded by individuals with long histories in the fund industry in Canada. Three members of NexGen’s executive team helped lead one of Canada’s largest public fund companies for over a decade prior to forming NexGen. NexGen seeks to assemble top quality investment management and to offer investors tax efficient solutions to their investment needs. NexGen acts as the manager and sponsor of the NexGen Funds, a group of 26 open-end mutual funds which commenced retail distribution of their securities in various provinces of Canada in September 2006.
The Agents: A syndicate of agents co-led by CIBC World Markets Inc. and Scotia Capital Inc includes: RBC Dominion Securities Inc., BMO Capital Markets, National Bank Financial Inc., TD Securities Inc., Canaccord Capital Corporation, Dundee Securities Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Berkshire Securities Inc., Blackmont Capital Inc., Wellington West Capital Inc., Desjardins Securities Inc., Berkshire Securities Inc., Newport Securities LP and Research Capital Corporation.
More information:
For further information: please contact:
Jim Hunter, Chief Executive Officer, (416) 775-3701, jhunter@nexgenfinancial.ca;
Laurie Munro, President, (416) 775-3705, lmunro@nexgenfinancial.ca;
NexGen Financial Limited Partnership
36 Toronto Street, Suite 1070
Toronto, ON M5C 2C5
Ph: 866 378 7119 Fax: 866 378 7121
Ph: 416 775 3727 Fax: 416 775 3737
This news release contains forward-looking statements that involve risks and uncertainties. These statements reflect NexGen’s current expectations, but are subject to a number of risks and uncertainties. Due to the many risks and uncertainties, NexGen cannot assure that the forward-looking information contained in this news release will be realized.
