Infratil's assets are managed by H.R.L. Morrison & Co.  It should be noted that Infratil's CEO, Marko Bogoievski, is also the Chief Executive of Infratil's Manager, H.R.L. Morrison & Co.  Marko is also a director of both companies.

A copy of their original 1994 IMA (investment management agreement) can be viewed here.

They also released a review of their fee structure on 11-Nov-2020, which was titled, "Infratil Limited: Comparison of Actual and Simulated Management Agreement Fees", with the following explanation:  "Management services are supplied to Infratil by the Manager (H.R.L. Morrison & Co) under a management agreement (the ‘Agreement’) dated February 1994 and subsequently amended in 1995, 2001, 2002 and 2005.  In 2017, the Infratil Board commissioned Fidato Advisory Ltd. to review the fees payable to the Manager under the Agreement and to assess whether, in its entirety the Agreement is in the best interest of Infratil shareholders. The review concluded that based on a comparison of the fee terms of the Agreement and the terms expected for comparable funds, the fee terms under the Agreement were fair to Infratil shareholders."

You can click here, or on the report title in the paragraph above to access the full report.

Further Reading:

https://infratil.com/about-us/corporate-governance/

https://infratil.com/about-us/manager-mandates/

https://infratil.com/about-us/people/

I hold IFT shares.  I think of them as a private equity (PE) company that is set up in a listed company structure.  They operate in a similar way to private equity consortiums or groups.  The following links provide great examples - in the form of case studies - of how they operate:

https://hrlmorrison.com/portfolio/infratil-energy-australia/

https://hrlmorrison.com/portfolio/z-energy/

https://hrlmorrison.com/portfolio/trustpower-and-tilt-renewables/

You may have noticed that IFT announced this morning that Tilt Renewables Limited (Tilt) has entered into a Scheme Implementation Agreement (SIA) with Powering Australian Renewables (PowAR) and Mercury NZ Limited (Mercury).  Under the SIA, it is proposed that PowAR will effectively acquire Tilt’s Australian business and Mercury will acquire Tilt’s New Zealand business by way of a Scheme of Arrangement, and Tilt shareholders will receive NZ$7.80 per share in cash.  As part of the Transaction, Infratil has entered into a binding Voting Deed with PowAR under which Infratil has committed to vote all the Tilt shares that it controls, representing 65.5% of Tilt shares on issue, in favour of the Scheme.  

While they operate much like PE (private equity) groups do, the major differences are (1) that IFT is a listed company, (2) they do have a strong focus on renewable energy and sustainable and responsibile industries - especially in more recent years, and (3) they are happy to hold some investments for decades, as long as the investment thesis still stacks up - i.e. they are not always focussed on short-term profit making opportunities, although they clearly don't ignore those either.

Thanks THOR. What has changed since I wrote that is that Marko B has resigned - retired I think - in April 2021, and his replacement is Jason Boyes - Mr Boyes is Chair of Longroad Energy and Galileo Green Energy. He joined Morrison & Co in 2011 after a 15 year legal career in corporate finance and M&A in New Zealand and London. He led Infratil's strategic review of its stake in Tilt Renewables, led the successful IPO of Z Energy in 2013, and has been instrumental in numerous Infratil investments since, including the acquisition of Vodafone NZ and subsequent capital raise in 2019, and the establishment of Longroad Energy in 2016 and Galileo Green Energy in 2020. Mr Boyes has an interest in Morrison & Co, which has the Management Agreement with Infratil.

Marko Bogoievski on the left and new Infratil MD Jason Boyes on the right, and below.

Jason Boyes is a great choice as Infratil's new CEO and MD, having been with Infratil for more than a decade, so it's an internal promotion to the top job, which is good to see with a company of this nature, because there are a lot of moving parts to Infratil, and Jason was already across all of them before taking on the MD role, having been instrumental in many of the deals that Infratil has done over the past 10 years.

I am a happy shareholder in IFT (both IRL & SM), and I'm happy with my current PF (portfolio) weightings, so I'm not looking to top up here, but for those who don't already have IFT in their portfolio and want to add them, or those who would like to own more IFT, this recent pullback has taken them back to levels seen in mid-2021 (May to early September 2021), as shown below:

Zooming out a little to a 5-year view now, we see that there has been relatively low volume traded in IFT up until a little interest in 2019 and then a lot more interest in the second half of calendar 2020 when the value of CDC (Canberra Data Centres) became more widely discussed, mainly by Gaurav Sodhi from Intelligent Investor, including on Ausbiz's "The Call", and Infratil also started to discuss exiting Tilt Renewables at a good profit (a very good profit). This interest in IFT only increased when they started buying up radiology businesses - and once again it seemed that Gaurav was one of the main analysts raising awareness of the investment opportunity with IFT. See here and here. [IFT is discussed from the 5:30 minute mark with the video - which is the 2nd link there]

I like their mix of assets, and their long-term sustainability focus, and the fact that they are opportunistic like Private Equity groups tend to be, but with that patient longer term focus and more ethical focus, although I concede ethical investing can mean very different things to different people. The radiology business they are building is exciting, and the fact that they are only buying stakes in these businesses rather than the entire businesses is also a positive, as they are happy to leave the current management teams in place and they also always ensure that the main players, particularly the management, still have equity in the businesses they are running, so their interests are well aligned with Infratil's interests and those of Infratil's shareholders also. This is one of the main attractions of Infratil for me; there is far less execution risk like there is when businesses go out and buy other businesses and then attempt to seamlessly integrate those new businesses into their existing structure. Infratil usually buy between 25% and 60% of a business and then assist the existing management to grow that business, to expand and to also increase profitability, but they don't take over the management. Infratil let the existing management teams continue to manage those businesses. Infratil do add value, but they do it alongside existing management who are all incentivised to continue to grow those businesses and see them prosper. Because they are shareholders too, and oftentimes (usually) their interests in those businesses that they manage represent the majority of their own personal wealth. It's all about alignment of interests and Infratil are VERY good at that.