Alinda collects $340m for core fund

The Connecticut-based fund manager has registered SEC filings showing progress made on its Global Core Infrastructure Fund, which has a final target of $3bn. Former CPPIB infrastructure chief Graeme Bevans is head of Alinda’s core infrastructure team.

Alinda Capital Partners, the Connecticut-headquartered fund manager headed by managing partner Chris Beale, has registered two US Securities and Exchange Commission (SEC) Form D filings showing that the firm has so far collected $340 million from six investors for its Alinda Global Core Infrastructure Fund.

Graeme Bevans

One of the filings shows $90 million being raised from four investors, while the other – for a parallel vehicle – reveals two investors committing a further $250 million. The fund has a final target of $3 billion.

Last year, the Fresno County Employees’ Retirement Association, a Californian pension, published a January email from Alinda investor relations representative Joanne Rios detailing a new core infrastructure fund. The email confirmed prior market chatter that Alinda had been talking to investors about a core fund since Graeme Bevans, former head of infrastructure at the C$140 billion (€98.5 billion; $145 billion) Canada Pension Plan Investment Board, was hired by Alinda in July 2010.

The fund will focus on “mature, operating infrastructure investments with high cash yield from the outset”, Rios said in the email, and will target a gross internal rate of return of 12 percent. The fund will also target a cash yield of 5 percent for the first year and a 7 percent average over the life of the fund, which will be a closed-end vehicle.

Alinda already manages two other funds, Alinda Capital Partners I and II, focused on value-added infrastructure assets, or infrastructure assets that present a growth opportunity in addition to the steady return characteristics typical of the asset class. The first fund, vintage 2006, closed on $3 billion in June 2007, while the second fund, vintage 2008, closed on $4.1 billion in January 2010.

Alinda was founded in August 2005 by ex-Citi bankers Chris Beale, Sanjay Khettry, John Laxmi and Simon Riggall and former Ahlstrom Capital chief Philip Dyk, who are all partners of the firm. Bevans and James Metcalfe are the firm’s sixth and seventh partners, respectively.

The firm was active in the UK in October last year, buying UK water company Cambridge Water through wholly owned subsidiary South Staffordshire Water and an additional 5.88 percent stake in airports operator BAA from Ferrovial (adding to an existing unspecified minority holding). The following month, it acquired a Texan oil storage company, Houston Fuel Oil Terminal Company, from US fund manager ArcLight Capital Partners