A group of former partners at Oaktree Capital Management-owned Highstar Capital has launched a new infrastructure fund and signed its first investment.
The new outfit, Foundation Infrastructure Partners, is led by Bret Budenbender, Andrew Nevin and Scott Litman, who left Highstar last summer.
Foundation Infrastructure will look to make investments across the capital structure in the middle market infrastructure sector, primarily in North America, an industry source told sister publication SparkSpread.
The New York-based outfit is targeting investments in the USD 100-500m range, with the option to scale up deals with the participation of co-investors, the source adds.
Details of Foundation Infrastructure’s target size and backers could not immediately be determined.
An official at the firm declined comment.
In its debut transaction, Foundation Infrastructure, in connection with Neuberger Berman Private Credit, recently invested in convertible preferred units issued by EQM Midstream Partners to part finance EQM’s acquisition from Morgan Stanley Infrastructure Partners of interests in midstream assets in Ohio and West Virginia.
At Highstar, Budenbender, Nevin and Litman were closely associated with investments in the power sector, including Star West Generation and GWF Energy.
Prior to joining Highstar in 2012, Budenbender was a managing director in the global power group at Barclays and Lehman Brothers.
Nevin was a vice president at the Cypress Group and a principal in the private equity group at Merrill Lynch before joining Highstar in 2007.
Before joining Highstar in 2004, Littman worked for AIG Investments and was an attorney at Paul Hastings.
The team’s departure from Highstar was first reported by SparkSpread on 15 June.