Pátria raises almost $1.2bn for Brazil infra fund

Pátria Investimentos, the Brazilian fund manager 40% owned by The Blackstone Group, has closed its second infrastructure fund just short of $1.2bn, beating a $1.0bn target.

Pátria Investimentos, a Brazilian fund manager in which US alternative assets firm The Blackstone Group acquired a 40 percent stake last year, has announced the final closing of its P2 Brasil Private Infrastructure Fund II on $1.155 billion.

The closing comes just days after it closed its fourth private equity fund on its hard cap of $1.25 billion. The fundraising took only eight months. Founded in 1988, the firm manages more than $5 billion across private equity, infrastructure, real estate and hedge funds.

Pátria's latest infrastructure fund, which is jointly sponsored by Brazilian engineering consultant Promon, had a target size of $1.0 billion. It will make control investments in Brazil in sectors such as transport and logistics, oil and gas infrastructure, and water and waste management. It will target returns of 20 percent or more, mainly through capital gains.   

“The P2 Brasil Fund was so well received due to its unique value proposition – development and upgrading of infrastructure principally serving corporate customers in Brazil utilising private equity-style value creation,” said Jeffrey Stern, managing partner of Forum Capital, in a statement. Forum acted as the placement agent for the fund.

No specific investors were identified, but the fund attracted commitments from a mixture of corporate and public pension funds, endowments, family offices, funds of funds and sovereign wealth funds from the US, Canada, Europe, Asia and the Middle East.

Since the first closing of the fund, it has made two platform investments. In April last year, it acquired control of NovaAgri, a provider of integrated rail-based infrastructure and logistics to the agricultural and commodities industry. The following October it formed Hidrovias do Brasil, a platform company for consolidating Brazil’s highly fragmented river transportation industry. According to a statement, the fund plans to make between three and five additional platform investments.