Global Infrastructure Partners (GIP) is preparing to launch an emerging markets fund early next year, according to four sources familiar.
The New York and Stamford-headquartered manager set up an office in Hong Kong this summer to lead the strategy. The current team comprises four partners as well as a number of associates, the sources said, adding that the firm is continuing to hire to support the Asia-driven effort.
The new strategy is being jointly led by former World Bank President Jim Kim, who was hired in early 2019 and is based in New York, and former CEO of the International Finance Corporation (IFC) Jin-Yong Cai, who is based in Hong Kong but travels between GIP offices.
Sources briefed stated that the fundraise will be “several billions of USD dollars in size” and will target investments predominantly in Asia and Latin America. Due to the fund’s size, the mandate of the new raise will be sufficiently differentiated from that of the firm’s flagship strategy, which can invest up to 15% of committed capital to non-OECD regions and can sign tickets of around USD 1-2bn.
Inframation recently reported that Global Infrastructure Partners IV (GIP IV) is set to achieve a USD 22bn final close of the flagship strategy in coming weeks.
The new EM fund will target sectors traditionally associated with the manager: investment opportunities in transport, energy, water and waste. It will seek to develop strategic partnerships and will make some opportunistic investments. It will be possible for the EM fund to invest alongside other GIP funds.