GIP amasses up to $15bn for Fund V as it eyes year-end close – exclusive

Global Infrastructure Partners V, which is targeting $25bn, is also thought to have between $5bn and $7bn in soft commitments still to come.

Global Infrastructure Partners has raised up to $15 billion to date for its flagship Global Infrastructure Partners V fund, sources familiar with the fundraising have told Infrastructure Investor.

The total includes a recent first close, with two sources saying GIP has lined up between $5 billion and $7 billion in ‘soft-circled’ commitments outside of the committed capital, which it hopes to add to the fund soon. One of the sources we spoke to, however, indicated the total amount raised so far was closer to $10 billion.

GIP is targeting a total of $25 billion and is aiming for the fund – launched in the middle of 2022 – to be wrapped up at target size by the end of the year, with the possibility this could slip into early next year. Another source we spoke to said that several rolling closes are planned during May, June and July.

Notable investors to date include the Washington State Investment Board, which committed $400 million to the vehicle, while the Connecticut Retirement Plans and Trust Funds invested $200 million.

GIP declined to comment on the fundraising.

The manager has enlisted Campbell Lutyens as a placement agent to aid the fundraising effort, having raised its four previous flagship strategies – the most recent a $22 billion effort closed in December 2019 – without a placement agent.

Campbell Lutyens is being compensated by GIP through both a “fixed fee and success fee”, according to recent documents from Hamilton Lane for the Santa Barbara County Employees’ Retirement System this month, which itself has deployed $10 million into the vehicle. As has been consistent with the market, fundraising has been slower for GIP than typically seen with its flagship funds.

GIP has still been deploying from its fourth fund over the past year. It had more than $8 billion still to be drawn from GIP IV, as at the end of June 2022, according to the Hamilton Lane documents. A source told infrastructure Investor this has now nearly all been drawn down.

The 10-year Fund V targets deals primarily in North America and western Europe in the energy, transportation, water and waste and digital sectors. GIP’s first deal in the latter sector came in November 2021, when it agreed a $15 billion take-private of US-based data centre operator CyrusOne alongside KKR.

GIP’s flagship funds target gross returns of between 15 and 20 percent. It has generated a gross IRR of 22.4 percent across its four funds to date, according to documents from the Connecticut scheme, resulting in a 15.5 percent net return and a 1.6x net multiple. GIP is understood to be targeting $20 billion in exits by 2025.