Growth Opportunities Fund

At the date of this report the Fund has made 11 investments, representing 36 underlying unlisted assets, worth A$323 million. There also remains an additional A$54 million of committed but not yet funded capital, which will be invested into underlying investments when required. The Fund delivered 4.8% during the quarter, taking both the one-year and since inception return to 14.6% on a gross (pre-fee) basis. 

Private capital continues to be highly selective about deploying into medium-to-long-term investment opportunities, which is seeing elevated return opportunities. This has allowed us to be highly selective in our review of new investments, and search for opportunities where we are investing in more than private markets beta - for example where there is a situational opportunity that results in our capital or support being considered valuable.  

Looking forward to 2026 we would anticipate, subject to dealflow and market conditions, that we would seek to make low-to-mid single digit investments, with the majority of these investments being in Australia, given current portfolio construction and pipeline. This may change due to factors within, or outside, our control and we continue to originate and assess investment opportunities against the Fund's investment mandate. All key thematics continue to see healthy dealflow providing an opportunity to deliver diversification to the Fund across primary thematics. 

Our impact advisory forum (IAF) met for the first time during the quarter to discuss the Fund's approach to impact. We anticipate that this group will meet formally several times during calendar year 2026 and we will continue to also obtain informal insights as required. We are grateful to the group's membership, which includes Kylie Charlton (Managing Director of Australian Impact Investments), Justin Lockwood (Director, Portfolio Management, Clean Energy Finance Corporation), and Australian Ethical members Alison George (Chief Impact & Ethics Officer), and Kate Saunders (former impact investor and Head of Australian Ethical’s Foundation). We are in the process of preparing for our first annual impact report for the Fund which is expected to be released in the first half of 2026. 

Growth Opportunities Fund Performance (net of fees)

As at 31 December 2025^*

^Benchmark: 10% p.a. absolute return.

*Past performance is not a reliable indicator of future performance. 

Inception date: 31/12/2024.

Portfolio Summary

New Investments / Divestments

During the quarter the Fund made two new investments, and two follow-on investments within an existing portfolio company:

• Neoen: The Fund entered into binding subscription documentation with Brookfield to acquire a portion of its holding in Neoen, a French-based global renewables developer, with a leading operation in Australia. In 2024 a Brookfield-led consortium announced a take-private of the Euronext Paris listed company. Neoen has an asset base of 8gw of operational and construction assets, 19.6gw of development assets, and a further advanced pipeline of 20gw of capacity.
• GigaComm: The Fund has invested alongside existing shareholders into a leading independent owner and operator of last-mile broadband infrastructure built specifically to deliver high speed internet services to apartments. The capital raise was structured as a convertible note providing seniority in the capital structure, with the proceeds used for, amongst other things, funding additional fibre installations into apartment blocks.
• Repurpose It: The existing platform made two bolt-on investments in the construction and demolition sector to further consolidate its position as a leading recycling business, providing collections, sorting, and disposal capabilities across the two investments. The thesis involves spending more capital to develop an on-site recycling facility to materially improve sorting and landfill diversion rates. The Fund invested its proportionate share of the required equity into these investments alongside existing co-shareholders.
• For Purpose Aged Care Australia: During the quarter we made a small follow-on investment into the business as part of a further note rights issue that was offered by For Purpose. This capital further positions the platform to close on its pipeline of new aged care facilities, in line with this aspiration to create a 5,000-bed national portfolio. This is anticipated to be the final raise as part of this round of notes for the business.
• Aligned Data Centers: During the quarter the Fund announced a divestment of Aligned Energy, a US-based hyperscale data center platform. The platform has been sold to a consortium including Nvidia, Microsoft and Blackrock. Aligned has grown rapidly given AI tailwinds and achieved its full year lease up in the first five months of the year. The Fund is expected to achieve a 38% IRR / 2.0x MOIC (in gross local currency terms, pre any fees or costs) and is expected to reach financial close in mid-2026, subject to customary closing conditions, with some of the purchase price paid in the subsequent years (but not subject to performance).

The transition to renewable energy requires more than just generation capacity. Octopus Energy (OE) was founded a decade ago to accelerate the net-zero transition by redesigning the software and services used to manage supply and demand in the energy markets.

Select Portfolio Highlights

• Macquarie Green Energy Climate Opportunities Fund: In December 2025, Aula, a portfolio of MGECO agreed to acquire 100% of a ~1GW portfolio of operational solar and battery energy storage systems (“BESS”) development projects in Australia from Lightsource BP, for a total equity consideration of ~$A480m. The portfolio comprises five operational solar assets with long-term contracted offtakes secured with high-quality counterparties, and each site also offers the potential for co-located BESS development. This bolt-on investment materially increases the scale and diversification of the Aula portfolio, bringing its total capacity to 1.5GW of wind and solar capacity in operation or construction, alongside a development portfolio of approximately ~8.6GW. The portfolio also provides immediate and strategic diversification by stage, technology and geography. The operational solar portfolio complements Aula’s existing wind projects (with low generation correlation) and adds meaningful exposure to New South Wales, the highest electricity demand state in Australia’s National Electricity Market. Aula also announced in December, financial close of the Carmody’s Hill Wind Farm, a 256MW onshore wind project in South Australia with potential for co-located BESS. The project benefits from a 15‑year PPA with Snowy Hydro and an Australian Government Capacity Investment Scheme contract, providing long‑term contracted revenues and a strong foundation for delivery. Construction is scheduled to commence in early 2026.
• Vertelo: The platform continues to grow its fleet of electric vehicles, growing the fleet to over 200 at the start of the period, and a view to targeting 250 around year-end. The platform has achieved break-even on a run-rate EBITDA-level during the period, faster than anticipated, which positions the platform strongly to continue to grow its fleet with major fleet operators. During the quarter Vertelo also received its Non-Banking Finance Company license from the Reserve Bank of India, India's central bank, allowing it to offer finance leases and credit solutions to customers in addition to the operating leases it has been offering.
• Octopus Energy (OE): OE undertook a separation of its businesses to form two standalone businesses, Octopus Energy (a European energy retailer), and Kraken (an enterprise software platform for energy utilities). As part of the separation Kraken also undertook a US$1 billion standalone primary equity raise, valuing the Kraken business at US$8.65 billon. This transaction results in both businesses having access to the capital required to pursue independent growth, with a formal separation expected to be completed by mid-2026. The two separate businesses will have different growth prospects, capital needs, and likely appeal to different ultimate owners when the existing investor base considers realization options. Kraken has also signed a major licensing agreement with a leading energy retailer, adding over 10 million customer accounts and bringing Kraken rapidly closer to its 100 million customer account target well ahead of plan. This strategic customer will also participate in Kraken’s equity raise.

Portfolio holding weights

Case Study: Repurpose It

Repurpose It (RPI) is a leading closed-loop resource recovery provider specialising in processing construction and demolition (C&D) and organic waste both to produce high-quality repurposed materials and to eliminate waste. The business is based in Melbourne, Victoria, and utilizes advanced facilities, including Australia's first, large-scale soil washing plants to process, screen, and clean materials so that they can be then reused back into infrastructure projects.

The Fund invested into RPI in 2024 alongside lead sponsor Palisade Impact and industry superannuation fund, REST. The business benefits from favourable circular economy regulatory tailwinds, with the Victorian government's landfill levy increasing to nearly A$170/tonne, providing a financial incentive for waste makers to dispose of in a more environmentally friendly way - as unlike landfill, disposal with RPI avoids incurring this levy, meaning that the business delivers strong revenues as well as avoiding landfill. They have two components to their business: the first being soil washing, to remove contaminants and break down construction waste into its aggregates (soil, rocks, etc); and the second being taking organics (food) waste and turning it into compost or back to be reused into gardens.

RPI's superior materials recovery approach has enabled more than 70,000 tonnes of CO2 to be avoided each year through organics processing compared to their disposal in landfill and more than 80 different types of products are manufactured from the 20 different waste streams received by the business. During FY25 the Business processed 840,000 tonnes of organics and contaminated waste was treated at a 99%+ resource recovery rate.

RPI has a strong and well-respected management team and continues to assess additional growth opportunities to further grow and strengthen its footprint. There remains a strong pipeline to deploy additional capital into the business to fund new growth initiatives over the near-to-medium-term.

Investments in the portfolio

Morrison Growth Infrastructure Fund: MGIF is a closed ended, unlisted infrastructure fund managed by Morrison & Co that invests in essential infrastructure businesses across developed OECD markets, with a primary focus on Australia. The portfolio spans sectors including renewable energy, utilities, digital connectivity, healthcare, circular economy and natural capital.

IFM Australian Infrastructure Fund: AIF is an open ended core infrastructure fund managed by IFM Investors, with a diversified portfolio of mature Australian infrastructure assets. The fund holds interests across airports, ports, electricity distribution, toll roads and social infrastructure.

Aligned Data Centers: Aligned Data Centers is a digital infrastructure platform that designs, develops and operates hyperscale and enterprise data centres across North and South America. The business focuses on high density, scalable facilities supporting cloud computing and artificial intelligence workloads.

Repurpose It: Repurpose It is an Australian resource recovery business specialising in the processing of construction, demolition and organic waste to produce repurposed materials. The company operates advanced facilities in Victoria, including large scale soil washing and organics processing plants.

Octopus Energy: Octopus Energy is a global energy and technology platform operating across energy retail, renewable generation and energy transition services. The business also owns the Kraken technology platform, which supports energy system management and utility operations.

For Purpose Aged Care Australia: FPACA is a not for profit aged care operator that owns and operates a portfolio of Australian residential aged care facilities. The investment is held via subordinated Social Capital Notes secured against the underlying operating business and property assets.

Neoen: Neoen is a global renewable energy platform that develops, owns and operates large scale solar, onshore wind and battery storage projects. Its portfolio spans multiple jurisdictions, including Australia, France and the Nordic region.

Macquarie Green Energy Climate Opportunities Fund: MGECO is a global, unlisted infrastructure fund managed by Macquarie that invests in renewable energy development and operating platforms. The fund focuses on established technologies such as offshore wind, onshore wind and solar across North America, Europe and Asia Pacific.

GigaComm: GigaComm is an unlisted Australian digital infrastructure business that owns and operates last‑mile fibre broadband networks in multi‑dwelling residential apartment buildings. The company focuses on upgrading older, high‑density buildings in metropolitan areas.

Vertelo: Vertelo is an unlisted fleet electrification platform focused on electric buses and charging infrastructure in India. The business acquires electric vehicles and related infrastructure and leases them to public and private transport operators under long‑term arrangements.

Global Listed Infrastructure: Global Listed Infrastructure Portfolio (GLI) is a liquid, listed portfolio of global infrastructure and infrastructure like companies across developed markets, providing liquidity and listed infrastructure exposure to the portfolio. The GLI portfolio is systematically constructed to track the FTSE Developed Core Infrastructure 50/50 Index (AUD hedged) and is diversified across regions and infrastructure subsectors.