Exclusive: Alinda abandons core infra fund

The Connecticut-based fund manager is no longer pursuing its global core infrastructure fund, a vehicle it launched in 2011 with a target of $3bn.

Infrastructure investment firm Alinda Capital Partners (Alinda) has abandoned efforts to raise capital for its Global Core Infrastructure Fund, which it launched nearly four years ago targeting $3 billion.

“We are not pursuing that fund,” Jim Metcalfe, a partner at Alinda, told Infrastructure Investor in an e-mail, without disclosing when or why that decision was made. The firm did not respond to a request for further comment.

In September 2012, Infrastructure Investor reported that the Connecticut-based firm had raised $340 million in commitments to the vehicle from six investors, according to filings with the Securities and Exchange Commission. 

The closed-end fund was to focus on mature, operating infrastructure investments with high cash yield from the outset. It targeted a gross internal rate of return of 12 percent as well as a cash yield of 5 percent in the first year and a 7 percent average overall.

Alinda already manages two other funds – Alinda Capital Partners I and II – which focus on infrastructure assets that present a growth opportunity in addition to the steady return characteristics typical of the asset class.

In July 2014, Alinda partnered with the UK’s Universities Superannuation Scheme to purchase a container terminal in Portsmouth, Virginia – the largest, privately-owned container terminal in North America – from APM Terminals, the independent port operating division of the AP Moller Maersk Group.

While financial details of the transaction were not disclosed, Alinda said at the time that it was funding its portion of the acquisition through Alinda Capital Partners II, its second infrastructure fund, which closed on $4 billion in January 2010.

Headquartered in Greenwich, Connecticut, the firm has made more than $8.5 billion of equity investments in infrastructure during the last eight years, including infrastructure businesses that operate in 33 states in the US as well as in Canada, the UK, Germany, the Netherlands, Belgium and Poland.

Specific sectors of interest to Alinda, which focuses exclusively on infrastructure, include energy infrastructure, transportation, telecommunications, utilities, and leased or contracted assets.

In addition to its Greenwich headquarters, the firm also has offices in Houston, London, and Düsseldorf.