Queensland Investment Corporation (QIC) has delivered its highest recorded annual earnings to Queensland government clients of A$8.9 billion in FY23-24.
Assets under management increased to A$111.7 billion1, approximately 70 per cent of funds exceeded performance objectives, and an operating pre-tax profit of A$125 million was recorded.
QIC Chief Executive Officer Kylie Rampa said the results demonstrated QIC’s unwavering focus on investment performance and prudent financial management whilst navigating market volatility.
“For more than thirty years, QIC’s ongoing objective has been to deliver compelling long-term returns for clients and maximise shareholder value for the Queensland Government,” Ms Rampa said.
“I am pleased to report in FY23-24, we have delivered on both counts, with an additional $252.5 million to be returned to the Queensland Government as a shareholder.
“Delivering record returns to Queensland government clients is a significant achievement against a backdrop of ongoing inflationary pressures and macroeconomic challenges.
“These earnings directly support the financial prosperity of the Queensland universities, hospitals, schools, councils, charitable foundations, government and statutory bodies QIC has the privilege of managing funds on behalf of.”
Ms Rampa said challenging conditions for capital raising and valuations persisted, but did not deter QIC from growing its investor base, broadening existing client partnerships, and generating liquidity.
“A key driver in our success has been QIC’s global diversified platform, which allows us to maintain organisational stability and overall investment performance,” she said.
“Substantial interest in QIC’s Infrastructure and Private Debt platforms has seen numerous capital partners and potential cornerstone investors engaged, while our Private Equity team’s conviction in European and North American middle-market buyouts is proving fruitful as deal flow strengthens.
“We have also worked to better position our real estate portfolio for future success amidst evolving economic conditions, including the recent increased transaction activity being driven by returning interest from institutional domestic and foreign investors for large-scale retail assets.”
Over the course of the 2023-24 financial year, performance highlights across QIC include:
- A$750 million raised through inaugural issuance of an Australian dollar domestic bond to be used for Queensland Titles Registry regearing
- Deployment of A$367 million across seven private debt investments in renewables, alternative fuel, digitalisation, logistics and transportation sectors
- QIC Infrastructure, on behalf of the Future Fund, acquiring a 19.8% interest in the EastLink toll road in Melbourne
- A strategic partnership with one of Denmark’s largest pension funds bolstered QIC’s European capital base with an initial private equity mandate from PenSam of approximately A$500 million
As the Queensland Government’s strategic investment advisor, QIC has:
- Submitted the Gympie Road Bypass investment proposal and been tasked with undertaking further pre-construction activity and approvals through a A$318 million government commitment
- Supported the Queensland and Commonwealth governments to reach contract close on the establishment and operation of PsiQuantum’s computing facility in Brisbane
- Launched the Queensland Venture Capital Development Fund, deploying matched capital into ten appointed venture capital funds and funding seven accelerator programs
- Continued to invest under the Queensland Critical Minerals and Battery Technologies Fund, Enterprise Acceleration Fund and Business Investment Fund to support businesses and local jobs in key and emerging thematics
“QIC’s position as the Queensland Government’s investment manager facilitates an ability to capture opportunities and build a track record in targeted emerging investment areas,” Ms Rampa said.
“This partnership allows us to harness government policy to develop new capabilities as a sovereign in-house LP and drive tangible financial outcomes aligned to priorities for the state, as evidenced by the FY23-24 results.”
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Citations
- As at June 30, 2024
