Stonepeak Seeks as Much as $3.5 Billion for Infrastructure Fund

  • Performance of predecessor fund ranks in top quartile
  • Record number of infrastructure funds now being raised

Stonepeak Infrastructure Partners, the alternative investment firm founded by two former Blackstone Group LP executives, is trying to gather as much as $3.5 billion for its second fund, investor documents show.

The firm has set a target of $2.5 billion for the fund, Stonepeak Infrastructure Fund II LP, and will accept as much as $3.5 billion, according to documents distributed for an Oct. 28 meeting of the Oregon Investment Council. Oregon at the meeting agreed to invest $400 million in the fund, a spokesman said.

Stonepeak, based in New York, was founded in 2011 by Trent Vichie and Michael Dorrell, previously co-heads of Blackstone’s infrastructure investment division. The firm’s first fund closed with $1.65 billion in commitments in 2013 and produced a net internal rate of return of 20 percent as of June 30, according to a report from investor New Mexico Educational Retirement Board. That performance puts it in the top quartile of similar funds, according to data compiled by Bloomberg. 

The new fund will follow a similar strategy as the first, investing in North America mid-market infrastructure, including the power, water, energy and transport sectors, the Oregon meeting documents show.

Vichie and Dorrell didn’t respond to phone requests for comment.

A record number of unlisted funds are currently being raised globally for investment in infrastructure, as firms try to take advantage of a funding gap in the sector. At the start of October, there were 160 unlisted infrastructure funds seeking $95 billion in investor commitments, according to Preqin. Alinda Capital Partners, Macquarie Infrastructure & Real Assets and Carlyle Group LP are also trying to raise multi-billion dollar funds for the strategy.

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