Partners Group racks up $8.5bn for third infrastructure fund

Partners Group has closed its third infrastructure fund at $8.5 billion. The fund’s limited partners include public and corporate pension plans, sovereign wealth funds, insurance companies, endowment funds, and foundations.

PRESS RELEASE

Partners Group, a leading global private markets firm, has received total client commitments of USD 8.5 billion for its third direct infrastructure program. The program is anchored by Partners Group’s third flagship direct infrastructure fund[2], which raised USD 6.4 billion, and includes an additional USD 2.1 billion committed via other managed private markets programs and bespoke client solutions that will invest alongside the fund.

Juri Jenkner, Partner, Head Private Infrastructure, says: “We are thankful for the continued trust our clients have placed in our transformational investing strategy. We believe Partners Group is in a unique position to source and build the next generation of infrastructure on our clients’ behalf due to our proprietary thematic investment approach and platform expansion capabilities.”

The closing follows an intense period of investment activity for the firm, with USD 5.4 billion committed in 2021 to infrastructure assets and companies that reflect the firm’s thematic investment convictions. These include: EOLO, Italy’s leading fixed wireless access broadband provider; GREN, one of the largest district heating platforms in the Baltics; Unity Digital, a wireless telecommunications infrastructure platform in the Philippines; Dimension Renewable Energy, a distributed energy platform focusing on community solar and battery storage in the US; Resilient, a distributed water infrastructure platform in the US and Canada; and North Star, a European operator of specialized vessels for essential offshore wind maintenance services.

The remainder of the program will be deployed globally, on behalf of investors, with a focus on infrastructure investments in high-conviction thematic areas associated with the overriding giga themes of Digitization & Automation, New Living, and Decarbonization & Sustainability. The firm’s signature approach is a platform-expansion strategy targeted at businesses or assets in infrastructure sub-sectors experiencing above-average growth due to transformative trends. A portion of the program is invested in next-generation infrastructure that contributes to improved sustainability, including supporting the UN Sustainable Development Goals. As such, clean energy, water treatment and re-use, and renewable-powered data centers figure among the thematic focus areas for Partners Group. Once invested, the firm’s dedicated ESG & Sustainability team works hand-in-hand with investment teams to develop ESG-focused value creation initiatives for every asset.

Esther Peiner, Managing Director, Private Infrastructure Europe, comments: “We aim to generate sustainable returns for our investors, whilst creating positive stakeholder impact. Our approach consists of thematically-driven investment combined with hands-on, platform-based value creation strategies aimed at developing next-generation infrastructure and generating returns that are protected against economic instability. With uncertainty caused by the pandemic and concerns over inflation still on the horizon, this approach has never been more relevant.”

Investors in Partners Group’s third direct infrastructure program are a mix of new and existing clients, including public and corporate pension plans, sovereign wealth funds, insurance companies, endowment funds, and foundations. Approximately one third of the commitments came from outside of Partners Group’s European home market, reflecting broadening investor appetite for the firm’s globally diversified but thematically focused infrastructure offering. Partners Group’s founders, partners, and other employees, together with affiliates of the firm, also made a meaningful commitment to the program.

Vittorio Lacagnina, Managing Director, Client Solutions, comments: “The success of this fundraise reflects the solid performance of our legacy portfolio, which hinges on our transformational investment strategy and the resilience shown in the face of a protracted pandemic and rising inflation. The program benefits from a sizeable seed portfolio, reflecting strong deployment pace and potential J-curve mitigation at a time when the acceleration of behavioral and structural changes is creating a compelling opportunity set for institutional investors.”