Stonepeak III nears first close with $50m from New Mexico

The North American firm’s third fundraise is said to be targeting $5bn, with a hard-cap of $7bn.

Stonepeak Infrastructure Partners III has received a $50 million commitment from the New Mexico Educational Retirement Board ahead of an expected first close in September, Infrastructure Investor has learned.

The fund has a $5 billion target and a $7 billion hard-cap, according to a source familiar with the matter.

Minutes from NMERB’s investment committee meeting on 24 August show the $12.3 billion pension has again invested with the North American firm, committing $50 million. NMERB has a 1.8 percent allocation to infrastructure, according to Infrastructure Investor data. It committed $50 million to Stonepeak’s second infrastructure fund, which closed in January 2016 on $3.5 billion, and $40 million to Stonepeak’s first fund.

In May, NMERB also selected Stonepeak to manage a $25 million separately managed account focused on infrastructure debt. The account will target a net internal rate of return of between 8 percent and 9 percent from five to 10 deals, investing in power generation, utilities, midstream, as well as transportation infrastructure.

NMERB in June committed $50 million to I Squared Global’s second infrastructure vehicle, a fundraise targeting $5 billion, and $40 million to Five Point Midstream Fund III.

Stonepeak declined to comment for this story.

The firm manages around $6.4 billion of investor capital. Its portfolio comprises companies in the energy, power, transportation, utilities, water and communications sectors.