Global Infrastructure Partners (GIP), the New York-based global infrastructure fund manager, has held a first close for its second global infrastructure fund on $3.04 billion, according to filings submitted earlier this week to the US’ Securities and Exchange Commission (SEC).
Infrastructure Investor exclusively reported in November that the firm had raised over $2 billion for Fund II and was in talks with some large limited partners about possible big-ticket commitments that could take the amount raised to over $2.5 billion. Those commitments have now come through, leading to the SEC fillings. GIP is targeting a final close of $6 billion for Fund II.
The fundraising is being spearheaded by GIP’s head of investor relations, Susan Healy, a former senior member of Babcock & Brown’s Capital Markets Group and head of investor relations at Carlyle Group for 13 years. In contrast to the fundraising for its first infrastructure vehicle, which was done by Credit Suisse’s placement arm, Fund II is being raised in-house.
GIP closed its first, $5.64 billion fund in May 2008, having originally targeted between $4.5 billion and $5 billion. The fund has invested in the likes of the UK’s Gatwick Airport, Australia’s Port of Brisbane and US wind farm developer Terra-Gen Power.
Investors in the first fund include the likes of Alaska Permanent Fund, Industriens Pension of Denmark and the UK's West Midlands Pension Fund (see Infrastructure Connect).
Little is known about the identity of investors in its second fund, but the UK’s £1 billion (€1.2 billion; $1.6 billion) Shropshire Pension is one of them, having committed £30 million to Fund II. GIP was also vying with First State for a £38 million mandate from the country’s £760 million Northumberland pension fund and South Korea’s National Pension Service was rumoured to be one of the big ticket LPs looking at the vehicle.
Credit Suisse and General Electric were founding investors in GIP, each committing $500 million. GIP’s website points out that it operates “on an arm’s length basis” from the two firms. GIP is headed by Adebayo Ogunlesi, formerly a senior investment banking executive with Credit Suisse.
GIP’s fundraising for its second vehicle has been one of the year’s most high-profile exercises. Its big end-of-year first close success could also give heart to many general partners that have started – or are about to start –fundraising for their follow-up vehicles.
As exclusively revealed in November, Dutch infrastructure fund manager DIF has started tapping the market for its third infrastructure fund, which will aim to raise €600 million. But a number of marquee names are slated to come to market in 2012 with new funds, including Swedish firm EQT, French infrastructure fund managers Cube Infrastructure and Antin Infrastructure Partners, as well as a new infrastructure vehicle from M&G Investments.