Feb 8, 2022
GIP Targets $25 Billion for Record Infrastructure Fund
, Bloomberg News
(Bloomberg) -- Global Infrastructure Partners is in talks to raise $25 billion for a new flagship fund, people familiar with the matter said, in what would be the world’s biggest pool of capital dedicated to infrastructure investments.
Discussions regarding the Global Infrastructure Partners V fund are in the early stages and GIP hasn’t made final decisions on its size, according to the people, who asked not to be identified discussing confidential information.
The firm is separately targeting $5 billion for a core fund to invest in lower-return, income-producing assets that may include toll roads and bridges, one of the people said. The size of the core fund could increase amid strong demand, the person said.
GIP may begin formally marketing its flagship fund as soon as the second half of the year, once it has finalized the core vehicle, the people said.
Deliberations are ongoing and no final decisions on timing have been made, according to the people. A representative for GIP declined to comment.
Founded in 2006 and led by Adebayo Ogunlesi, GIP manages roughly $77 billion in assets and makes equity and debt investments primarily in the transport, waste and water, energy and digital infrastructure sectors.
It’s picked up the pace in recent months, being involved in the take privates of Sydney Airport and data center operator CyrusOne Inc., and buying stakes in one of Woodside Petroleum Ltd.’s liquefied natural gas projects and Peel Ports Group from DWS Group.
Investors continue to pour money into infrastructure funds, drawn by the stable, recurring returns these assets can generate. The amount of capital targeting the sector is forecast to grow to $1.87 trillion by 2026, from $864 billion at the end of 2021, according to data provider Preqin.
GIP raised $22 billion for its last flagship fund, Global Infrastructure Partners IV, in 2019. That’s the largest infrastructure vehicle raised to date, Preqin data show, outranking funds from the likes of Brookfield Asset Management and EQT AB.
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