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Infrastructure Bets Big: $5.5B Fund Closes on Value Creation
23 Jul
Summary
- Partners Group closed its infrastructure secondaries program at over $5.5 billion.
- The fund focuses on value creation rather than entry-price discounts for returns.
- New clients represent over 70% of the committed capital for the program.
Partners Group has finalized its infrastructure secondaries program, amassing over $5.5 billion in capital. This substantial fundraise is anchored in the strategy that value creation, driven by in-depth underwriting, will yield superior returns, rather than relying solely on entry-price discounts.
The program includes a $1.7 billion closed-end fund, supplemented by bespoke mandates and parallel investment vehicles. A notable aspect of this capital pool is that new clients constitute over 70% of the committed capital, indicating a growing demand for this specialized investment strategy.
This capital is already being deployed, with over 25% committed across 20 initial investments. These include GP-led transactions and LP-led portfolios, such as a significant investment in a continuation vehicle for a global commercial aviation leasing portfolio comprising 69 assets.
Partners Group's direct-style underwriting has historically delivered strong results, with fully realized returns of 18% net IRR on over 70 investments globally since 2006. The firm emphasizes that identifying near-term value creation during due diligence is more crucial than discounts, leading to sustainable growth.
