By Chibuike Oguh
NEW YORK (Reuters) – Non-public fairness agency Stonepeak Companions is aiming to lift between $15 billion and $20 billion for its subsequent flagship North American infrastructure fund to spend money on property equivalent to utilities, knowledge facilities, ports and railways, in line with folks aware of matter.
The fundraising plans underscore robust demand from traders for infrastructure property, whose inflation-linked money flows present a defend from hovering costs. Stonepeak accomplished elevating $14 billion for such a fund solely 9 months in the past. Non-public fairness funds of this dimension are usually spaced out by at the least a few years to have sufficient time to deploy their capital.
Stonepeak has begun contacting traders to gauge their curiosity within the fund launch, which is predicted subsequent yr, stated the sources, who requested anonymity as a result of the matter is confidential.
A Stonepeak spokesperson declined to remark.
Infrastructure funds, together with Stonepeak, raised greater than $50 billion within the second quarter of this yr alone, up 25% from the earlier yr, in line with knowledge supplier Preqin, underscoring to robust demand from institutional traders.
The predecessor fund, Stonepeak Infrastructure Fund IV, returned 1.08 instances its traders’ cash as of the tip of June this yr, in line with the Oregon Public Workers Retirement Fund (PERS), which had made a $500 million dedication. Non-public fairness funds usually take a few years to indicate returns whereas they make investments the cash they raised.
The prior $7.2 billion Stonepeak Infrastructure Fund III, which was raised in 2018, had returned 1.59 instances its traders’ cash, PERS knowledge confirmed.
Stonepeak has additionally started elevating its first international “core” infrastructure fund, with an preliminary goal of $5 billion, and the agency is aiming to achieve its first fundraising shut by the tip of this yr, the sources stated.
In contrast to Stonepeak’s North America funds which have mounted durations – Fund IV has a 12-year maturity with the choice to increase by three years – the core fund is open-ended, the sources stated. The core fund goals to spend money on infrastructure property that present inflation-linked income stemming from long-term contracts. It can spend money on property in member international locations of the Group for Financial Co-operation and Growth (OECD) in such sectors as transportation, communications and utilities.
A few of Stonepeak’s current investments throughout its funds embrace a $2.4 billion deal to amass Intrado’s emergency call-routing companies unit and shopping for a 36% stake in Denver, Colorado-based knowledge heart supplier CoreSite for greater than $3 billion. Stonepeak additionally made its first Australian funding on Sunday by agreeing to purchase GeelongPort, alongside superannuation fund Spirit Tremendous, in a deal valued at A$1.1 billion ($732 million), sources advised Reuters.
Stonepeak was based in 2011 by former Blackstone (NYSE:) Inc executives Michael Dorrell and Trent Vichie. The New York-based agency has about $52 billion in property below administration unfold throughout the Americas, Europe, Asia and Australia.