Stonepeak Infrastructure Partners is nearing a second close of about $1 billion for its maiden renewable energy fund, sources have told Infrastructure Investor.
It is understood that the firm expects to hold the close next month with a view to completing fundraising by the end of the year. Stonepeak Global Renewables Fund is believed to have no hard-cap and to target gross returns of 15 percent.
One source said that a substantial proportion of the capital raised so far has come from investors new to Stonepeak, with significant support from investors in Europe and Canada.
Stonepeak declined to comment on the fundraising.
The strategy was launched last year and is led by Hong Kong-based Hajir Naghdy, who joined from Macquarie Capital in late 2018. Naghdy, now senior managing director at Stonepeak, was influential in Macquarie Capital’s first offshore wind transactions in Taiwan and Stonepeak’s investment in Swancor Renewable Energy – one of two deals secured by the fund, which saw Stonepeak become a shareholder alongside Macquarie Capital in Taiwan’s 376MW Formosa 2 project.
Stonepeak Global Renewables has also invested up to $200 million in US-based distributed solar company Madison Energy. The company plans to scale to at least $1 billion in projects over the next few years with a total capacity of around 550MW.
A source told Infrastructure Investor last year that the Asian and North American markets were expected to form the bulk of the fund, with Stonepeak said to be attracted by the growing power-purchase agreement markets in both regions.
The expected interim close comes as Stonepeak is thought to have held a $6.2 billion first close on Stonepeak Infrastructure Fund IV ahead of a $10 billion target and a $12 billion hard-cap, with about 80 percent of the committed capital coming from re-ups. About 20 percent of capital is still to be deployed from Fund III.
Additional reporting by Jordan Stutts