GIP raises $10.8bn for Fund III

The New York-based infrastructure fund manager is closing in on its $12.5bn target for GIP III.

Global Infrastructure Partners is on track to hit its $12.5 billion target for GIP III, its latest infrastructure vehicle, according to a filing with the Securities and Exchange Commission. The firm has raised $10.8 billion to date for the vehicle, which it launched last October.

With its latest close, the New York-based infrastructure fund manager has collected an additional $3.1 billion since its last SEC filing in February when it had raised $7.7 billion.

According to the SEC filing of 30 April, the $10.8 billion represents “aggregate commitments to GIP III including the feeder fund, parallel fund, friends & family fund and general partner commitments.”

GIP declined to comment.

Investors in GIP’s earlier vehicles have proved to be a driving force behind the fundraising process, with limited partners such as the Oregon Public Employees Retirement Fund approving a $400 million commitment to GIP III – more than double the $150 million it invested in GIP II; and the Washington State Investment Board allocating $1 billion to the latest GIP fund, significantly higher than the $250 million it had committed to Fund II.

The Florida State Board of Administration has also renewed its commitment to GIP, approving a $150 million investment in Fund III in the first quarter of 2016, the same amount it had contributed to GIP II.

However, GIP has also attracted new investors such as the New York City Retirement System, a $154 billion public pension system that in March committed $350 million to GIP III.

With a hard cap of $15 billion, GIP III is set to follow in the footsteps of its predecessor as the largest infrastructure fund ever raised. It will have a five-year investment period and a 10-year duration, with four possible one-year extensions. Also like its predecessor, it will invest in the energy, transportation and water sectors in developed markets.

Toronto-based fund manager Brookfield Infrastructure follows close on GIP’s heels also raising its latest infrastructure vehicle Brookfield Infrastructure Fund III. Initially targeting $10 billion, Brookfield last month raised its original hard cap from $12 billion to $14 billion. The Toronto firm has so far raised $11.8 billion for BIF III according to a document filed with the SEC in April.

Brookfield holds the record for the second largest infrastructure fund ever raised. The firm closed BIF II on $7 billion in October 2013.

BIF III will invest in the transportation, energy and renewables sectors in OECD countries. Fund III will target investments ranging from $400 million to $1 billion in size. It will have a four-year investment period and a 12-year term, subject to two one-year extension options.