North America: Global Infrastructure Partners IV targeting first close in 4Q18

20 September 2018 - 12:00 am UTC

Global Infrastructure Partners is aspiring to reach a first close on their latest fund, Global Infrastructure Partners IV (GIP IV), before the end of the 2018 calendar year, multiple sources familiar with the situation told Inframation.

The manager launched fundraising for the fund earlier this year with a target of USD 18bn, as previously reported. Inframation understands that a formal hard cap for the fund has yet to be determined.

The minimum capital requirement for co-investment opportunities with the manager is noted to be higher than the USD 250m threshold established by the manager for GIP III, one of the sources familiar with the matter added.

GIP declined comment on the situation.

The manager is also aspiring to raise about USD 3bn for two debt funds, one of which is named Spectrum and will target traditional debt financing, whilst the other, named CAPS II, would target mezzanine financing.

The New York-headquartered manager targets brownfield investments globally in the energy, transportation and waste sectors, historically targeting a gross IRR between 15-20%. Their funds have holdings in a variety of assets across Europe, Asia, North America, and Latin America, including investments in the Port of Melbourne, Gatwick Airport, Edinburgh Airport, and others. Their full portfolio is available on GIP’s Inframation Deals profile here.

GIP recently agreed to buy a 50% stake in the world’s largest offshore wind project, the 1.2GW Hornsea 1 project, from Orsted for about USD 4.46bn. The acquisition will be leveraged by the largest single project finance package ever assembled in the renewable energy sector, amounting to more than GBP 3.5bn.

The firm is also amongst a group of infrastructure investors planning bids for Macquarie’s 36% stake in Brussels Airport, which is expected to fetch an EV/EBITDA multiple value of around 21 times, according to sources.

The fund manager previously raised USD 5.64bn, USD 8.25bn and USD 15.8bn, respectively, across three equity funds. Some of the largest known institutional investors having committed to GIP III include the Washington State Investment Board (USD 500m), Alaska Permanent Fund Corporation (USD 500m), Oregon Investment Council (USD 400m), and the German-based R + V Insurance company (USD 300m).

Unlisted infrastructure equity fundraising this year has already surpassed the entirety of the fundraising completed in 2017. According to Inframation Deals¸ global fundraising so far this year has amounted to USD 70.84bn across 41 entities, compared to last year’s USD 65.37bn across 50 entities. 

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Global Infrastructure Partners