Global Infrastructure Partners, the private equity firm whose holdings include Gatwick Airport in the U.K., raised $8.25 billion for the largest fund dedicated to infrastructure buyouts.
GIP’s second fund attracted more than its initial target of $7.5 billion as investors expect cash-strapped governments to open the door to private acquisition of assets, Chairman Adebayo Ogunlesi said in an interview. The firm in 2008 raised $5.64 billion for its first fund, which owns stakes in the Australia’s Port of Brisbane and East India Petroleum.
“If you look around the world, governments are under tremendous fiscal pressure, so they really don’t have the capability to continue to invest,” Mr. Ogunlesi said. “Private-sector investment is going to have to fill some of that void.”
GIP, started by Credit Suisse Group and General Electric in 2006, will use the new fund to invest primarily in operating businesses in developed markets, Mr. Ogunlesi said. The firm, which oversees $15 billion, has teams dedicated to investments and the portfolio’s operations and draws on a group of former executives as senior advisers. It focuses on the energy, transport, and water and waste industries.
GIP surpassed Goldman Sachs Group’s $6.5 billion infrastructure pool as the industry’s largest, according to research firm Preqin. Globally, 142 funds dedicated to infrastructure were raising capital as of Oct. 1, targeting $91.6 billion, Preqin said.
The new fund, which gathered about one-third of its capital from clients in the first pool, offered tiered levels of fee terms based on the amount an investor committed and whether they participated in the first fund, Mr. Ogunlesi said. GIP’s investors include sovereign wealth funds, endowments, and corporate and public pension funds, including those from Maine, Oregon and Washington.