EXCLUSIVE Stonepeak Partners eyes up to $20 billion for North America infrastructure fund – sources
NEW YORK, Nov 22 (Reuters) – Private equity firm Stonepeak Partners is aiming to raise between $15 billion and $20 billion for its next flagship North American infrastructure fund to invest in assets such as utilities , data centers, ports and railways, according to people. familiar with the subject.
Fundraising plans underscore strong investor demand for infrastructure assets, whose inflation-linked cash flows provide protection against soaring prices. Stonepeak finished raising $14 billion for such a fund just nine months ago. Private equity funds of this size are typically spaced at least two years apart to allow enough time to deploy their capital.
Stonepeak has started contacting investors to gauge their interest in launching the fund, which is expected next year, said the sources, who spoke on condition of anonymity as the matter is confidential.
A Stonepeak spokesperson declined to comment.
Infrastructure funds, including Stonepeak, raised more than $50 billion in the second quarter of this year alone, up 25% from a year earlier, according to data provider Preqin, highlighting the strong demand from institutional investors.
The predecessor fund, Stonepeak Infrastructure Fund IV, returned 1.08 times its investors’ money at the end of June this year, according to the Oregon Public Employees Retirement Fund (PERS), which had made a pledge of $500 million. Private equity funds typically take a few years to show returns while they invest the money they have raised.
The previous $7.2 billion Stonepeak Infrastructure Fund III, which was raised in 2018, brought in 1.59 times its investors’ money, according to PERS data.
Stonepeak has also started raising its first global “grassroots” infrastructure fund, with an initial target of $5 billion, and the company aims to complete its first fundraising round by the end of this year, it said. the sources.
Unlike Stonepeak’s North American funds which have fixed terms — Fund IV has a 12-year maturity with a three-year extension option — the base fund is open-ended, the sources said. The core fund aims to invest in infrastructure assets that generate inflation-indexed earnings from long-term contracts. It will invest in assets of member countries of the Organization for Economic Co-operation and Development (OECD) in sectors such as transport, communications and utilities.
Some of Stonepeak’s recent investments across its funds include a $2.4 billion deal to acquire Intrado’s emergency call routing services unit and the purchase of a stake in 36% in CoreSite, a Denver, Colo.-based data center provider worth more than $3 billion. Stonepeak also made its first Australian investment on Sunday when it agreed to buy GeelongPort, alongside superannuation fund Spirit Super, in a deal valued at A$1.1 billion ($732 million), sources told Reuters.
Stonepeak was founded in 2011 by Michael Dorrell and Trent Vichie, former executives of Blackstone Inc (BX.N). The New York-based company has approximately $52 billion in assets under management spread across the Americas, Europe, Asia and Australia.
Reporting by Chibuike Oguh in New York Editing by Matthew Lewis
Our standards: The Thomson Reuters Trust Principles.