MEAP has capital commitments for $C250 million ($284 million) predominantly from a range of Canadian pension funds, and plans to raise further equity this year.

The seed investment for the fund will be a 15% stake in Altalink, which owns around 11,600km of high voltage transmission lines in Alberta.

The unlisted MEAP will target investments exclusively in utility assets such as electricity transmission and distribution networks, gas and other pipelines, gas distribution and certain water utilities. MEAP has a mandate to acquire assets in both Canada and the US (with US investments limited to 20% of the fund's assets) and is focusing on cash yield, targeting returns of between 3% and 5% above the long term Government of Canada bond rate.

MEAP is targeting a fund size of between $C400 million and $C500 million and a second close is anticipated later this year. Macquarie has committed $C50 million ($57million) to MEAP, of which it intends to hold $C30 million ($34 million) over the medium term.

Canadian pension funds including British Columbia Investment Management Corporation (on behalf of the Province of British Columbia's pension funds) and New Brunswick Investment Management Corporation (on behalf of the public sector pension funds within the Province of New Brunswick) have made commitments to the fund.

The fund is Macquarie's third infrastructure venture in an overseas market where the equity has been raised predominantly from institutions from those markets. Funds include the Korean Road Infrastructure Fund (KRIF) announced in April 2003, and the South Africa Infrastructure Fund (SAIF)- established in mid 2000.