Partners Group is expected to hold a final close of its latest direct infrastructure fund in 1Q18, Inframation has learnt.
The Switzerland-based fund manager is expected to exceed the USD 2bn target size of Partners Group Direct Infrastructure 2016.
It is understood that the fund had secured close to USD 2bn of commitments in late August, in addition to a further USD 300m – USD 500m in managed accounts.
Partners Group declined to comment.
The fund, which launched fundraising in August 2015, invests across the transport, social infrastructure, renewables, power and utilities sectors.
The 10-year fund, which has three one-year extensions, will invest over four years in predominantly brownfield assets. It can invest up to 20% in greenfield assets.
The fund will invest 20-50% of capital in Europe and North America, up to 40% in other OECD countries, and up to 20% in emerging markets.
It is understood that Partners Group’s preferred direct infrastructure strategy is to build platforms, either through add-on acquisitions or by building out a project pipeline.
The fund seeks to make 12-15 investments with a target net return IRR of 8-12%.
Partners Group Direct Infrastructure 2016 has received commitments from UK local authority pension funds Tyne and Wear (USD 140m), Wiltshire (USD 60m), Gwynedd (USD 43.6m), Essex (GBP 140m), Clwyd (EUR 10m), Suffolk (GBP 51m), and the London Borough of Hammersmith & Fulham (EUR 55m).
Gross management fees are 1.50% per annum on aggregate commitments with 10% tail-down after five years of the final closing. No fees are paid after 10 years of the final closing.
Performance fees will be charged at 15% over a 6% preferred return or 20% over an 8% preferred return.
It is understood that Partners Group will launch its next global infrastructure fund this year, after registering Partners Group Global Infrastructure 2018 in Luxembourg at the end of last year.
Predecessor fund Partners Group Global Infrastructure 2015 will invest in direct, primary and secondary fund investments globally.