Macquarie Converts Infrastructure Income Fund Into BDC

Macquarie Asset Management is converting its Infrastructure Income Opportunities Fund into a business development company (BDC), according to a regulatory filing, as the firm expands its private credit offerings for individual wealth investors.

The newly formed BDC leverages Macquarie’s existing private credit platform to invest in private loans, bonds, leases, and asset-backed financing. The fund’s target assets span critical infrastructure sectors, including energy, digital infrastructure, transportation, water, waste management, social infrastructure, and climate transition projects.

In the regulatory filing, Macquarie noted that prospective investments could include transportation leasing platforms, specialty waste services, energy transition assets such as battery storage, and emergency or educational facilities.

“The company seeks to invest in Infrastructure Investments that are characterized by contracted cashflows, stability and resilience, and seeks to deliver attractive risk-adjusted returns with a focus on consistent cash yield and downside protection,” Macquarie stated in the filing.

To satisfy BDC regulatory requirements, the majority of the fund’s portfolio will be deployed into private U.S. middle-market companies. However, Macquarie may invest up to 30% of total assets in non-qualifying investments, including international infrastructure opportunities and non-U.S. entities.