Stonepeak raises $8bn-plus as it nears second close for Fund IV – exclusive

The firm has raised an additional $2.5bn for its fourth flagship infrastructure fund and its maiden renewables vehicle, both of which are expected to reach final close in Q1 2021.

Stonepeak Infrastructure Partners has secured around $2 billion in new commitments for its latest vehicle and is in the process of holding a second close on more than $8 billion, a source familiar with the New York firm’s fundraising efforts told Infrastructure Investor.

According to the source, the firm has also raised an additional $500 million for its maiden renewables fund, bringing the total raised to date for that vehicle to around $1.1 billion.

Last week, New York State Common Retirement Fund agreed to commit $250 million each to Stonepeak Global Renewables Fund and Stonepeak Infrastructure Fund IV, according to the minutes from the pension’s June meeting.

Stonepeak IV reached a $6.2 billion first close in June and is on pace for Stonepeak to hold a final close on the fund’s $12 billion hard-cap by Q1 of 2021, the source said. The renewables fund, which is targeting $1.25 billion, is also expected to reach a final close early next year. It is believed to be targeting gross returns of 15 percent.

Stonepeak has set terms for Fund IV that match those of previous vehicles, including a 1.5 percent management fee, a 20 percent carry and an 8 percent hurdle. The firm targets a net IRR of 12 percent for all its flagship funds and has been meeting or exceeding that target according to documents published by the Employees’ Retirement System of Rhode Island.

As of April, Fund I, which closed on $1.6 billion in 2012, was generating a net IRR of 12 percent; Fund II, which the firm closed in 2015 on $3.5 billion, was generating 14.3 percent; while Fund III, its largest to date at $7.2 billion, was generating 25.8 percent.

According to the source, the firm plans to make one more investment from Fund III, which is likely to be in a transportation or communications asset. As of April, Fund III was 82 percent “committed and reserved”, the ERSRI pension documents revealed.

The renewables fund, launched last year, is led by Hong Kong-based Hajir Naghdy, who joined from Macquarie Capital in late 2018. Stonepeak has so far made two investments from the fund. Last August, it acquired a 95 percent stake in Swancor Renewable Energy, a a subsidiary of Taiwanese chemical manufacturer and offshore wind developer Swancor, which holds a 25 percent stake in the 376MW Formosa 2 offshore wind project; and a $200 million investment in US-based distributed solar company Madison Energy.

Stonepeak declined to comment for this story.