Global Infrastructure Partners III nears $11 bln in four months

  • Ranks as largest-ever infrastructure fund
  • Surpasses $8.3 bln predecessor
  • Firm has at least one top quartile fund

Global Infrastructure Partners quietly broke its own record for the largest infrastructure fund ever raised with $10.8 billion in commitments for its third pool, according to filings.

The New York and London-based private equity firm headed up by Adebayo Ogunlesi, chairman and managing partner, listed Global Infrastructure Partners III’s date of first sale in January, indicating a rapid fundraise and strong LP interest.

“GIP is the rare firm that has successfully demonstrated that infrastructure investing is not just an inflation hedge but can be a source of investment alpha,” said David Fann, CEO of TorreyCove Capital Partners, an LP advisory firm for institutional investors.

It’s unclear whether GIP is still drawing commitments or has closed the fund. A spokesman declined comment. The filings for the fund don’t list a target, just an amount raised.

GIP surpassed the $8.25 billion it raised with Global Infrastructure Partners II, which closed in 2012.

Brookfield Infrastructure Fund II and GS Infrastructure Partners I both raised about $7 billion as the closest runners-up to GIP.

GIP’s debut fund, the vintage 2006 Global Infrastructure Partners, generated an IRR of 15.07 percent for Maine Public Employees Retirement System as of Sept 30, 2015. That’s ahead of the top quartile threshold of 14.4 percent for that vintage year, according to an annual analysis by Buyouts.

Among its recent moves, GIP agreed to sell London City Airport in February for about $2.9 billion to a Canadian consortium including Ontario Teachers Pension Plan, Omers, AIMCo and Wren House Infrastructure Management Ltd, according to a report. Highstar Capital sold its 25 percent stake in the airport as part of the deal.

GIP, which bought its stake in the airport in two deals in 2006 and 2008, grew the airport to 4.3 million passengers in 2015 from 2.4 million in 2006. The firm reportedly paid a third of the sale price when it bought its stake in the airport from Dermot Desmond, according to a report.

Among personnel moves by the firm, GIP named William Brilliant as a partner at the firm in September. He originally joined GIP in 2007.

Overall, GIP invests in power and utilities, natural-resource and air-transport infrastructure, seaports, freight railroads, water distribution and waste-treatment facilities. GIP lists $33 billion in assets under management for its investors.

Action Item: GIP investor relations, Jim Jenkins: 212.315.8121

See: Top 11 Infrastructure Funds of all Time

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