Stonepeak Seeks as Much as $3.5 Billion for Infrastructure Fundby
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.