TRUE rattles the tin for $20m as it locks down AusSuper fund stake

afr.com:

Specialist fund manager TRUE Infrastructure is on the hunt for $20 million to fund its acquisition of AustralianSuper’s holdings in two infrastructure vehicles managed by London-listed Foresight Group.

As reported by Street Talk, the industry fund giant was in talks with TRUE to jettison positions in two Foresight funds – the Diversified Infrastructure Trust and the Energy Infrastructure Trust – which own stakes in transport, energy and other infrastructure assets.

TRUE Infrastructure CEO Peter McGregor and chairman Mike Fitzpatrick have seen a notable increase in appetite for green infrastructure investment. Arsineh Houspian

The positions were worth $30 million and were expected to trade at a discount to underlying value. In a performance update, TRUE confirmed an agreement to acquire $15 million in units in the EIT and $15 million in units in DIT. The initial tranche of $10 million was settled in June. The remaining $20 million is due to settle before the end of August.

TRUE added that based on the acquisition price for the new units, the fund is “expected to benefit from an immediate revaluation of the new EIT and DIT units acquired to their published unit prices”.

TRUE is an infrastructure fund run by Peter McGregor and Mike Fitzpatrick, aimed at wealthy individuals. Fitzpatrick is one of the pioneers of infrastructure investment and co-founder of Infrastructure Capital Group.

Sources told Street Talk AustralianSuper had picked up the allocations via a superannuation fund merger and decided it no longer needed them.

The two funds were previously managed by Fitzpatrick’s ICG, and landed in Foresight’s stables after it paid $105 million (plus earnouts) in a cash and scrip deal and to buy ICG in July 2022.

ICG had spent