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Tiger Infra and Kiewit in shale JV

Tiger Infrastructure Partners and industry-leading contractor Kiewit have formed a partnership to invest in shale-based infrastructure. The resultant start-up, TKT Venture, has $500m to spend.

Year-old Tiger Infrastructure Partners has teamed with contractor Kiewit Corporation to form Tiger Kiewit Turnkey (TKT), a partnership established to invest $500 million in midstream energy, New York-headquartered Tiger said in a press statement.

TKT will “design, build, own and operate” midstream infrastructure dedicated to shale exploration and production, according to Tiger, which launched in 2011 with financing from hedge fund legend Julian Robertson.

Tiger founder Emil Henry, a longtime Wall Street executive who has worked in the US Treasury, said TKT would benefit the well-established client base developed by Kiewit during its century-long existence, while Marc Blair, head of natural resources for Tiger noted the “highly differentiated manner” TKT offered for midstream investing.

Founded in Omaha, Nebraska, Kiewit is a privately held Fortune 500 company that in 2011 totalled $10 billion in revenue. Its Kiewit Infrastructure Group is responsible for half of its business, according to Kiewit. 

Henry, who launched Tiger with his erstwhile team from defunct financial-services provider Lehman Brothers, told Infrastructure Investor in February that he considered shale important to the asset class.

“The building out of the gathering, transportation and treating infrastructure to exploit this resource are going to continue to be a major opportunity for the foreseeable future,” he said.

In May, Infrastructure Investor exclusively reported that Tiger has already amassed some $175 million on its way to a purported $500 million fundraising target. The fund reached an official first close on $113 million last September, according to a regulatory filing.

Robertson, who bankrolled Tiger Infrastructure Partners, once managed $22 billion. After retiring in 2000, he has used his personal fortune to help finance up-and-coming hedge fund and investment talent.