Global Infrastructure Partners Seeks $5 Billion for Debut Emerging-Markets Fund
Global Infrastructure Partners Seeks $5 Billion for Debut Emerging-Markets Fund
(Bloomberg) -- Global Infrastructure Partners is seeking $5 billion for its debut emerging-markets fund, according to a person familiar with the matter.
The fund is targeting gross U.S. dollar returns of 20% annually and will focus on transport, energy, water and waste investments in middle-income countries in Latin America and Asia, excluding India, said the person, who requested anonymity because the fundraising is private. Representatives for GIP didn’t immediately respond to requests for comment.
GIP’s fund will be managed by Jim Yong Kim, the former president of the World Bank, and Jin-Yong Cai, the former CEO of the International Finance Corp. who more recently worked at TPG.
GIP, which oversees more than $51 billion, is led by Adebayo Ogunlesi, a former Credit Suisse Group AG executive who’s also the lead director of Goldman Sachs Group Inc.’s board. The firm is also eyeing up to $22 billion for its fourth global infrastructure fund, which would be the industry’s biggest. It received approval from investors to increase its original target of $20 billion earlier this summer, according to correspondence seen by Bloomberg. The Wall Street Journal earlier reported the flagship fund’s expanded target.
GIP is also seeking $1.25 billion for its third India fund, where its operations are led by Sharad Malhotra.
Investors have slowed their commitments to infrastructure funds in recent months. In the three months to Sept. 30, 19 funds raised $8.4 billion, a decline from the $44 billion gathered in the same period in 2018, according to data from Preqin. The data provider said that increasing competition is squeezing returns in some markets, but noted that investor sentiment and appetite for the asset class remains “robust.”
To contact the reporter on this story: Gillian Tan in New York at gtan129@bloomberg.net
To contact the editors responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net, Pierre Paulden, Melissa Karsh
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