Global Infrastructure Partners closes US$6b fund
By CHOW PENN NEE
PRIVATE equity fund Global Infrastructure Partners, which counts Credit Suisse Group and General Electric Co as founding investors, completed its fund-raising yesterday with US$5.64 billion raised.
The fund invests in global infrastructure assets such as airports, waste-management companies, energy generation pipelines, and water, across both OECD and select emerging market.
The fund, formed in 2006, is already a cornerstone investor in London’s City Airport, and is invested in port assets in the United Kingdom and Argentina, and in a liquid petroleum product storage facility in India. It also recently completed its acquisition of 46 per cent of Biffa, the leading UK integrated waste management business.
Earlier this year, it teamed up with Singapore’s PSA International to develop Argentina’s second largest container terminal - International Trade Logistics - and complementary logistics and warehousing businesses. Last year, GIP’s International Port Holdings also formed a joint-venture company with PSA International to operate a short sea container terminal at the Great Yarmouth Port.
The fund will continue to look at opportunities that Singapore presents, notably in the energy sector, said Adebayo Ogunlesi, a former senior Credit Suisse investment banker who runs GIP. With Temasek divesting its two remaining generating companies, Senoko Power and PowerSeraya, he said that they are monitoring developments in this area. ‘We will certainly follow developments closely, and look out for opportunities.’
‘Singapore is an attractive place to buy assets,’ he noted.
‘Our approach is to look at opportunities in places with strong economic fundamentals where we can improve operating efficiency and therefore benefit all stakeholders,’ he explained, adding that the fund is also looking at markets such as China and Australia to invest in.
The turmoil in the financial markets has not affected investor interest in the fund, and they see investors interested in making a play for infrastructure, believing this asset class to be able to withstand the current market volatility. ‘Infrastructure assets are a defensive play during market turmoil. These assets tend to have stable cash flows and are for the long term,’ Mr Ogunlesi noted.
The fund’s investors include institutions and high net worth individuals from 21 countries such as the US, Canada, UK, Middle East, Japan, and Hong Kong.
Its institutional investors include public and corporate pension plans, endowments, foundations and financial institutions.
Source : Business Times - 13 May 2008
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