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GIP closes $5.6bn infrastructure fund

The US private equity firm has closed on its first global fund with money from founding investors Credit Suisse and General Electric.

Global Infrastructure Partners has completed fundraising for its flagship first fund, with total commitments of $5.64 billion (€3.65 billion).

The fund has already made several investments, including a high-profile acquisition of London City Airport in December 2006. The airport, which is located in the Royal Docks close to Canary Wharf and the City of London, predominantly serves business travelers travelling to 31 destinations within the UK and across Europe.

The fund has also invested in port assets in the UK and Argentina, and in a liquid petroleum product storage facility in India. GIP recently completed the acquisition of a stake alongside buyout firm Montagu Private Equity in Biffa, a British waste management infrastructure business.

“In these times of extreme market volatility and ever more cautious investment strategies, the size and diversity of GIP’s investor commitment is particularly notable,” said Adebayo Ogunlesi, GIP chairman and managing partner, in a statement. “The $5.64 billion GIP has raised not only provides a well-capitalised platform on which to expand our portfolio, it affirms the market’s approval of GIP’s disciplined approach to infrastructure investing as well as the fund’s long-term commitment to providing top quality services to our customers along with attractive returns for our investors.”

Headquartered in Connecticut with additional offices in New York, Hong Kong and London, GIP is planning to use its fund to invest in infrastructure assets worldwide, in both OECD and select emerging market countries. The firm says it will target investments in single assets and portfolios of assets, as well as companies in the energy, transport, water, and waste management sectors.

Credit Suisse and General Electric were the joint founding investors in GIP, with each committing $500 million of investment capital. The firm’s six founding partners are former senior executives of Credit Suisse and General Electric. GIP is now led by eight partners, including a general counsel.

The fund’s closing comes on the same day that Morgan Stanley has closed its $4 billion infrastructure fund.