Exclusive: Alinda targets $5bn for new infra fund

The US firm is looking to raise its third vehicle, focusing on a value-added strategy and targeting a rate of return of at least 15%.

Connecticut-based fund manager Alinda Capital Partners (Alinda) has started marketing a new vehicle which will focus on value-added infrastructure assets in North America and Europe, a source told Infrastructure Investor on Friday.

Alinda is aiming to raise $5 billion for this fund, a target significantly greater than the size reached by its two predecessor vehicles. Alinda Capital Partners I closed on $3 billion in June 2007, while the firm's follow-on fund closed on $4.1 billion in January 2010.

In 2011, Alinda started fundraising efforts for a third fund – the Global Core Infrastructure Fund – but the firm told Infrastructure Investor earlier this week that it was no longer pursuing that vehicle, without disclosing when or why that decision was made.

Alinda did not respond to a request for further comment at the time and has not responded to a request for comment for this article.

According to the source, Alinda abandoned the core strategy due to the asset class's falling returns. The market had “got away” from the firm, the person said, noting that returns were significantly lower than the 12 percent rate of return Alinda was targeting for its core fund.

The new vehicle will focus on midstream, telecommunications infrastructure and transportation in North America and Europe, sectors where Alinda believes it can achieve an internal rate of return of 15 percent or more, the same source said.

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