Fundraising - MARCH 30, 2016

Oaktree launches infrastructure fund

by Andrea Waitrovich

California-based Oaktree Capital Management has launched its debut infrastructure fund, according to an SEC filing. Other fund details were not disclosed.

The firm has another fund in the market, the $1 billion Oaktree Power Opportunities Fund IV, which is scheduled to have a close this year. An official statement has not been released. The power opportunity fund will invest in public and private companies.

Since 2014, there have been 31 infrastructure megasfund were launched, according to IREI’s FundTracker database. Fundraising efforts total more than $176.53 billion in targets.

The largest infrastructure fund is the National Infrastructure and Investment Fund, managed by the Ministry of Finance India. International pension funds and sovereign wealth funds from countries such as Russia, Singapore and the United Arab Emirates have shown interest in participating in the vehicle. The NIIF is meant to fund development of infrastructure projects, including reviving stalled ones.

During 2015, 16 infrastructure mega-funds closed, raising more than $43.8 billion in equity commitments. Thus far this year, four infrastructure mega-funds have closed, with fundraising targets of more than $13.13 billion.

The largest infrastructure fund closing was North Haven Infrastructure Partners II, managed by Morgan Stanley Infrastructure. The fund raised $3.6 billion. NHIP II will pursue a global value-add strategy in developed markets, continuing to focus on high-quality assets in the energy, utilities and transportation sectors whose value may be significantly enhanced through operational improvements.

The second-largest infrastructure fund closing thus far this year was Stonepeak Infrastructure Fund II, managed by Stonepeak Infrastructure Partners, raising $3.5 billion.


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