GIP raises $7.7bn for fund III

The New York fund manager has passed the halfway mark towards its $12.5bn target for its latest vehicle.

Just four months after Infrastructure Investor reported that Global Infrastructure Partners (GIP) was seeking to raise $12.5 billion for its third infrastructure fund, the New York-headquartered fund manager has passed the halfway mark with at least $7.7 billion in commitments, according to a filing with the Securities and Exchange Commission (SEC).

Already holding the record for raising the largest infrastructure vehicle ever – GIP closed its second vehicle on $8.25 billion in October 2012 – the fund manager would hold on to that distinction should it reach its target. The vehicle has a hard cap of $15 billion.

The SEC document was filed one day after the Maine Public Employees Retirement System  (MainePERS) said it would be committing $150 million to GIP III, double the amount the public pension fund invested in GIP II in May 2013.

Other examples include the Oregon Investment Council (OIC), which invests all of the State of Oregon's funds, including the Oregon Public Employees Retirement Fund (OPERF). Last December , OIC said it would be committing $400 million to GIP III, more than double the $150 million invested in GIP's previous vehicle.

Last November , the Washington State Investment Board (WSIB), which manages 35 state retirement and public funds, re-upped its investment with GIP – it had committed $250 million in GIP II – approving a commitment of $1 billion in GIP's latest fund.

GIP III will most likely have a similar remit as its predecessor, providing institutional investors with exposure to a global and diversified portfolio of assets. The third fund will also likely continue the investment theme of forming investment partnerships with large corporations, now a well-established feature of the firm's second fund.

Canadian fund manager Brookfield Infrastructure Partners (BIP) is also in the market, seeking $10 billion for its third vehicle – Brookfield Infrastructure Fund III (BIF III) – which has a hard cap of $12 billion. Limited partners that have already committed to BIF III include MainePERS, which along with the $150 million commitment it approved earlier this month to GIP has pledged an equal amount to BIF III.

Chicago Teachers' Pension Fund decided to commit $50 million to BIF III last September.