Three new mid-market outfits to watch out for

With average fund sizes getting bigger and bigger, new GPs are – wisely – choosing to target the mid-market. We cast the spotlight on three new firms with roots in larger industry outfits.

Marquee names continue to account for a big chunk of infrastructure fund managers. If you recall, the top five in our most recent II 50 ranking accounted for around 38 percent of the $388 billion total raised over the past five years. However, new firms, including spin-outs from high-profile outfits, are alive and kicking.

It wasn’t that long ago, in fact, that Stonepeak Infrastructure Partners spun out of Blackstone to raise $1.2 billion for its debut fund. Six years later, it closed its third fund – the second-largest of 2018 – on $7.2 billion.

This is just one example of a trend that is not going away. According to McKinsey & Company’s 2019 private markets review, there has been a resurgence of $1 billion-plus first-time funds. “These new first-time funds reflect both a rebound in successful deal makers striking out on their own and a response to rising LP demand for more tailored private market exposure,” according to the report.

Although the three new GPs we have identified over the following pages – Asterion Industrial Partners, AVAIO Capital and Intermediate Capital Group – don’t all fit the same profile, they are all, in their different ways, targeting the mid-market. As they weave their way through different stages of deploying and raising capital for their debut funds, they are worth keeping an eye on.