GIP raises $2bn, nears first close for Fund II

Global Infrastructure Partners, the New York-based global infrastructure fund manager, has so far raised around $2bn for its second fund and is thought to be targeting a first close by the end of this year.

Global Infrastructure Partners (GIP) has so far raised around $2 billion for its second global infrastructure fund, according to sources. The same sources indicate that the firm may announce a first closing by the end of this year.

The firm is understood to be talking to some large limited partner groups about possible big-ticket commitments. Consequently, the sources say that the total raised could soon climb to $2.5bn or more.

GIP declined to comment on the fundraising.

GIP closed its first, $5.64 billion fund in May 2008, having orginally 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).  

The fundraising is being spearheaded by Susan Healy, the firm’s head of investor relations. She was appointed last year having been a senior member of Babcock & Brown’s Capital Markets Group and head of investor relations at Carlyle Group for 13 years. GIP’s first fund was advised by Credit Suisse’s placement arm, but for the second fund it is relying on its in-house resource.

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.

Yesterday, Infrastructure Investor exclusively revealed that Dutch infrastructure fund manager DIF had launched fundraising for its third fund, which will aim to raise €600 million. The firm’s second fund closed ahead of a €500 million target on €571 million last year.