Stonepeak Infrastructure Partners is looking to raise its first renewables fund, sources familiar with the matter told Infrastructure Investor.
While one source indicated the fund was initially looking to raise between $750 million and $1 billion, the target is now believed to be $1.25 billion. A hard-cap has not been set, another source added.
The US-based firm began establishing the strategy towards the end of last year, when it hired Hajir Naghdy from Macquarie Capital as a senior managing director. Naghdy is leading the fund from Hong Kong. He previously headed up Macquarie Capital in Asia and the Middle East, spearheading its investments in Taiwan’s first two offshore wind farms.
Sources added he was joined by Brad Kim in May, ending an 18-year spell with Macquarie Capital, where he led its Korea office. Two more people have also been hired from the firm, the source said.
The Asian market is set to be a significant part of the Stonepeak fund, the sources said, with North America also in focus. The manager aims to take advantage of the burgeoning PPA market in both regions, one explained. It is understood that Stonepeak decided to launch a separate vehicle partly due to the scale of the opportunity. The renewables fund is believed to be targeting a gross return of 15 percent.
Stonepeak has begun discussions on the fund with its existing investor base, as well as Korean and Australian institutions, a source said. The manager is understood to be using Campbell Lutyens as placement agent for the fund. The firm has placed Stonepeak’s last two vehicles.
The US manager did not respond to requests for comment.
Jordan Stutts also contributed to this report.