Partners Group has raised a total of €3 billion ($3.7 billion) for its latest flagship global direct program with the close of Partners Group Direct Infrastructure 2016, together with additional capital committed to direct infrastructure via a number of other commingled investment programs and mandates that were raised in parallel.
The global direct program is the successor to Partners Group Direct Infrastructure 2011, which closed in mid-2012. It follows the same relative value investment approach, which capitalizes on the firm’s global platform and extensive industry network to source attractive investments across a range of sectors. In terms of investment strategy, the program aims to create value for its clients via platform expansions, operational value creation and building core assets.
“We continue to focus on our proven strategy of investing in high-quality infrastructure assets or projects, with value creation potential and visibility on future cash-flow generation,” said Brandon Prater, partner, head private infrastructure Europe, Partners Group. “In the current environment, the sectors we believe offer the most attractive opportunities globally include the renewables, communications, and energy infrastructure sectors, where certain transformative trends have led to outsized pockets of growth.”
At the time of its final close, the program was already committed to 11 investments on behalf of its investors across a diverse range of sectors and regions. Examples include Borssele III/IV, a 730-megwatt wind farm development located off the coast of the Netherlands; Raven, a project to build a state-of-the-art ethylene processing facility in Baytown, Texas; and High Capacity Metro Trains, an A$2 billion ($1.57 billion) project to design and deliver 65 trains to the State of Victoria in Australia.
“We see strong demand from our global client base for our flagship private infrastructure offerings, with investors appreciating the diversification benefits an allocation to the asset class can bring to their portfolios,” said Juri Jenkner, partner, head private infrastructure, Partners Group. “As a firm, we are currently focused on three global megatrends, which we believe will generate attractive investment opportunities across private markets asset classes in the long term: digital transformation, new generation living and consumption, and the energy revolution.”
Partners Group’s founders, partners, and other employees, together with affiliates of the firm, made a substantial investment into the program, committing more than 4 percent of the funds raised.