Highstar seeks $3.5bn for fourth infra fund

The infrastructure fund headed by Christopher Lee has recently begun raising the fund, which, at $3.5bn, would equal in size its third fund, which closed on $3.5bn in October 2007. As of March, Highstar Capital III was approximately two-thirds invested.

New York-based Highstar Capital has kicked-off fundraising for its fourth infrastructure fund targeting $3.5 billion, according to a market source familiar with the firm.

The fundraising effort began in the last month, the person said.

Earlier this year, reports had surfaced that the independent infrastructure fund would be seeking between $3 billion to $5 billion for its fourth fund. At $3.5 billion, it would match by size Highstar’s third infrastructure fund, which closed on $3.5 billion in October 2007.

Christopher Lee

Speaking to InfrastructureInvestor in March, Highstar chief executive officer Christopher Lee said fund three was about two-thirds invested. Lee made the remarks shortly after Highstar-backed marine terminal operator Ports America won a 50-year concession to operate five berths at the Port of Oakland in exchange for a $60 million upfront fee plus other ongoing capital commitments. At the time, Lee said the investment was being financed on an all-equity basis.

Highstar’s other portfolio companies include Star Atlantic, a waste management company, Utilities Inc., a water and wastewater utility, Interstate Waste Services, a waste collection and disposal business and a minority interest in London City Airport.

The firm was founded in 1998 and has more than $5 billion in capital commitments under management, according to a marketing brochure obtained by InfrastructureInvestor. Since its inception, it has directed the investment of approximately $15 billion into infrastructure assets, according to the brochure.

A spokesperson for Highstar did not return a call seeking comment before press time.