Stonepeak raised $3.2 billion for its first fund dedicated to midsize infrastructure bets, exceeding an original target of $2.5 billion.
The New York-based firm said investor demand led it to raise more than it previously planned for the vehicle, known as Stonepeak Opportunities Fund. The $267.7 billion New York State Common Retirement Fund, Albany; the $65.2 billion Maryland State Retirement and Pension System, Baltimore; and the $104.9 billion Virginia Retirement System, Richmond, are among the fund’s investors, according to data compiled by Bloomberg.
“Major players, ourselves included, have raised bigger and bigger flagship funds, which has left an opening for us to go back into the middle market and pursue both control deals as well as structured transactions,” said Jack Howell, the firm’s co-president and co-head of the opportunities fund, alongside Nikolaus Woloszczuk. Stonepeak’s definition of structured capital includes preferred-equity bets, which offer downside protection, Howell said in an interview.
The fund aims to write checks of between $200 million and $500 million for deals in sectors including transport, logistics, communications, energy and energy transition, predominantly in North America and Europe, Howell said. Stonepeak has communicated to investors that the fund is targeting returns of 15% to 20% before fees, a person with knowledge of the matter said.
Stonepeak Opportunities Fund has already committed over 40% of its capital to transactions including an investment in U.K. roadside-assistance company AA, a stake in Canadian natural gas liquids pipeline system Kaps, a loan to Clean Energy Fuels and a joint venture for a data center with American Tower.
Stonepeak, which specializes in infrastructure and real estate, oversaw about $71.2 billion in assets under management as of March, including the $14 billion raised in 2022 for its fourth flagship fund. The firm last year sold a minority stake to Blue Owl Capital’s general partner strategic-capital arm.
