Reuters – Global Infrastructure Partners Raises $7.5B Fund

Global Infrastructure Partners Ltd., owner of London’s Gatwick Aiport and of pipelines formerly owned by Chesapeake Energy Corp., revealed on Monday it had raised about $7.5 billion for its second infrastructure fund – the largest globally to date. The disclosure, made in filings with the U.S. Securities and Exchange Commission, means that the fund, Global Infrastructure Partners II, is now bigger than Goldman Sachs Group Inc.’s first infrastructure fund, which raised $6.5 billion in 2006.

 

(Reuters) – Global Infrastructure Partners Ltd, owner of London’s Gatwick Aiport and of pipelines formerly owned by Chesapeake Energy Corp, revealed on Monday it had raised about $7.5 billion for its second infrastructure fund – the largest globally to date.

 

The disclosure, made in filings with the U.S. Securities and Exchange Commission, means that the fund, Global Infrastructure Partners II, is now bigger than Goldman Sachs Group Inc’s first infrastructure fund, which raised $6.5 billion in 2006.

 

A Global Infrastructure Partners (GIP) spokesman declined to comment as the fund is still in fundraising mode.

 

Infrastructure fundraising remains challenging, with 149 infrastructure funds currently in the market targeting $98 billion in total, according to research firm Preqin.

 

Investor confidence in GIP may reflect a strong track record in clinching deals. Appetite may also be increasing for real assets such as toll roads and gas grids that offer steady cash flows and a hedge against inflation that many fear could return in earnest in the wake of loose monetary policy around the world.

 

GIP, founded in 2006 with backing from General Electric Co and Credit Suisse Group AG, raised $5.6 billion for its first infrastructure fund, targeting assets in the transport, energy, utilities and waste sectors.

 

Goldman Sachs was not as successful in its second infrastructure fund endeavor, slashing its fundraising target in half in the middle of its marketing process and ending up raising $3.1 billion.

 

One of GIP’s investors, the Oregon Investment Council, said in September 2011 that Global Infrastructure Partners II was targeting gross returns of 15 to 20 percent and had a target of $5 billion. But GIP has since raised its fundraising target based on investor demand, with media reports suggesting the fund could now top $8 billion.

 

GIP earlier this month completed the $2 billion acquisition of interests in Chesapeake Midstream Partners LP. In April, it agreed to buy Edinburgh airport in Scotland from Ferrovial-owned BAA for 807 million pounds ($1.3 billion), cementing its position as a leading British airport operator. (By Greg Roumeliotis)