Publications

Fundraising - MARCH 3, 2016

Morgan Stanley Infrastructure raises $3.6b

by Andrea Waitrovich

Morgan Stanley Infrastructure has raised $3.6 billion for North Haven Infrastructure Partners II. The team also has assembled a co-investment club vehicle consisting of a group of NHIP II’s investors with a nominal amount of up to $2.2 billion for a total of $5.8 billion of available capital to invest in the infrastructure sector.

NHIP II will pursue a global value-add strategy in developed markets, continuing to focus on high-quality assets in the energy, utilities and transportation sectors whose value may be significantly enhanced through operational improvements.

“We believe that long-term trends in the infrastructure sector in North America, Europe and Asia-Pacific, coupled with current market dislocations, are supportive of our strategy to acquire assets at attractive valuations and employ our operational expertise to de-risk them and increase profitability,” said Markus Hottenrott, CIO for Morgan Stanley Infrastructure, in a statement.

North Haven Infrastructure Partners closed in 2008 with $4 billion in equity commitments.

The mega-fund close follows fellow infrastructure mega-fund close by AMP Capital’s global infrastructure platform equity, which raised more than $1 billion

Other infrastructure private equity vehicles that have closed thus far this year include Macquarie Infrastructure and Real Assets, which raised $3.1 billion in equity commitments for its Asian regional infrastructure platform and Ardian, which raised €2.65 billion ($2.89 billion) for its fourth infrastructure fund, Ardian Infrastructure Fund IV.

Other 2015 global infrastructure mega-fund closes include KKR Global Infrastructure Investors II, managed by Kohlberg Kravis Roberts & Co., which closed with $3.1 billion in equity commitments. The fund focuses on identifying, pursuing, executing and managing infrastructure investments with an emphasis on OECD countries. It invests in renewable energy, pipelines, utilities and transportation-related assets.

Copenhagen Infrastructure Partners held a $2.2 billion final close for its Copenhagen Infrastructure II in 2015. The fund will concentrate on investments in energy infrastructure, such as biomass-fired power plants, electricity transmission grid, and onshore and offshore wind power in Europe and North America.

I Squared Capital announced a final close in April 2015 for its ISQ Global Infrastructure Fund with $3 billion in equity commitments.

In March 2015, British private equity firm Pantheon held a final close for its Pantheon Global Infrastructure Fund II, raising more than $1 billion, exceeding its equity fundraising target at more than double the size of its inaugural program from 2009.

And The Blackstone Group closed Blackstone Energy Partners II in February 2015 with $4.5 billion. BEP II will continue its strategy of proactive, thematic investing. It will partner with management teams to build, develop and acquire a portfolio of high-quality assets that are diversified by geography and across each segment of the energy and natural resource industry value chain.

 

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