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Washington, D.C. (February 2, 2021) – Ullico Inc. announced that on February 2, 2021, its Ullico Infrastructure Fund, alongside consortium partner QIC, an Australian alternatives manager (together, the “Consortium”), signed a definitive agreement to acquire 100% interest in the US business of North America’s largest single-district energy platform, Enwave Energy (“Enwave US”).
Enwave Energy’s market-leading US business currently operates across eight cities and serves over 400 buildings, including universities, office buildings and hospitals. Enwave US benefits from long-term contracts with landlords and tenants, providing stable, predictable cash yield with most revenues coming from fixed capacity payments and a pass-through of commodity costs. Enwave US is well-positioned to participate in the growing energy Public Private Partnership (“PPP”) market in the US.
“Enwave US is a stable business underpinned by long term inflation-linked contracts and we believe it is positioned for growth, especially in the campus PPP space,” said Rohit Syal, head of acquisitions for Ullico’s infrastructure business. “For the Ullico Infrastructure Fund, this platform represents a great opportunity to work together with a likeminded partner in QIC, a renowned global asset manager.”
Edward M. Smith, President and CEO of Ullico Inc., said, “Ullico is proud to invest in an important district energy platform providing critical and sustainable infrastructure services to some of the largest and fastest growing cities in the country. We hope to be long term partners in the communities we operate in and continue delivering innovative infrastructure solutions.”
The Ullico Infrastructure Fund currently has investments in the water, wastewater, telecommunications, electricity transmission, power generation, transportation and gas transmission sectors and is exploring opportunities in all core sectors.
“Enwave US provides long-term, predictable, and inflation-linked cash flows, which adds to the core category of our existing portfolio,” said Jeff Murphy, portfolio manager for Ullico’s infrastructure business. “Enwave US complements our regulated utility investments while capitalizing on opportunities to deploy sustainable energy solutions. We are pleased to further diversify our portfolio with this district energy business.”
Ross Israel, Head of Global Infrastructure, QIC, said, “We are delighted that our team has been successful in its bid to secure such a high-quality core infrastructure asset. Our thematic-based investment strategy has highlighted strengthening trends in distributed energy and sustainability, with Enwave US well-positioned to take advantage of this growing thematic.”
The transaction is subject to customary closing conditions and regulatory approvals. The Consortium expects to receive all such approvals and complete the transaction by mid-2021.
Macquarie Capital (USA) Inc. acted as the Consortium’s financial advisor, Norton Rose Fulbright US LLP acted as legal counsel and Shearman & Sterling LLP acted as lender counsel. Scotia Capital Inc. and TD Securities Inc. acted as Brookfield’s financial advisor.
For more than 90 years, Ullico has been a proud member of the labor movement, keeping union families safe and secure. In 2010, the Ullico Infrastructure Fund (UIF) was established to assist in the construction, maintenance and refurbishment of America’s infrastructure. As of December 31, 2020, UIF had approximately $3.26 billion in commitments on behalf of 215 investors, with 18 portfolio investments comprising all major sectors.
From insurance products that protect union members, leaders and employers, to investments in building and infrastructure projects that have created thousands of union jobs, our customers continue to trust us with protecting their families, employees and investments. The Ullico Inc. Family of Companies includes The Union Labor Life Insurance Company; Ullico Casualty Group, LLC; Ullico Investment Company, LLC (Member FINRA/SIPC); Ullico Investment Advisors, Inc.; and Ullico Benefit Solutions, LLC. For additional information, visit www.ullico.com.
Ullico Infrastructure Tax-Exempt Fund, LP:
The Ullico Infrastructure Tax-Exempt Fund, LP (“UIF”) is a Delaware limited partnership designed to permit qualified tax-exempt purchasers to invest in core infrastructure investments located in the United States and Canada. The fund and the units issued will not be registered under the Securities Act of 1933, as amended, the Investment Company Act of 1940, as amended, or under state securities laws. UIF is being offered and sold in reliance on the exemption from the securities registration requirements of the Securities Act set forth in Regulation D (the “Rule”). UIF will only be sold to “accredited investors” as that term is defined under the Rule. The portfolio consists primarily of private equity and debt investments in infrastructure companies located in the United States and Canada. UIF does not have a meaningful comparison because there is no benchmark available for private infrastructure investments. The Ullico Infrastructure Tax-Exempt Fund, LP was incepted in November 2012.
Ullico Investment Advisors, Inc. (“UIA”) is a registered investment adviser with the United States Securities and Exchange Commission (“SEC”) in accordance with the Investment Advisers Act of 1940, as amended. Ullico Investment Advisors, Inc. has two majority-owned subsidiaries: Ullico Infrastructure Management Company, LLC and UIA Investment Management, LLC. Both are Relying Advisers in reliance upon the SEC staff’s no-action letter to the American Bar Association dated January 18, 2012. The firm’s full list of composite and pooled fund descriptions is available upon request.
QIC is a long-term specialist manager in alternatives offering infrastructure, real estate, private capital, liquid strategies and multi-asset investments. It is one of the largest institutional investment managers in Australia, with A$85bn (US$65bn) in funds under management 1 . QIC has over 800 employees and serves more than 115 clients. Headquartered in Brisbane, Australia, QIC also has offices in Sydney, Melbourne, New York, Los Angeles, San Francisco, London and Copenhagen. For more information, please visit: www.qic.com.
QIC is a long-term infrastructure investor with an established global platform, an active management approach and a proven, 14-year track record. With a global team of more than 55 professionals across five offices (including an office in New York), QIC Global Infrastructure manages A$14.5bn (US$11.2bn) across 19 global direct investments and has realised a further A$7.2 billion (US$5.6bn) of investments for its clients 2. Its sector-centric and thematic-based investment strategy deconstructs risk across sector value chains identifying relative value for investment across market cycles. This drives a targeted origination approach, enabling the firm to build diversified portfolios for its clients.
1 As at 31 December 2020.
2 As at 31 December 2020. USD values converted using 31 December 2020 FX rates.