New York-based Global Infrastructure Partners (GIP) has closed its debut emerging markets infrastructure fund with an aggregate capital commitment of over $2.1 billion, according to a statement. Earlier media reports had stated that the fund was looking to raise $5 billion.
The GIP Emerging Markets Fund I has already deployed over $1 billion across a diversified portfolio of assets, the statement added.
The fund counts the Asian Infrastructure Investment Bank (AIIB) and the Government Service Insurance System (GSIS), a pension fund for government employees in the Philippines, as its backers. AIIB committed $150 million in the infrastructure vehicle in 2021 while GSIS agreed to invest $300 million in 2023.
The fund’s other investors include private pension plans, sovereign wealth funds, insurance companies, financial institutions, asset managers, endowments, and family offices from North America, Europe, Asia, and the Middle East.
With a dedicated emerging markets fund, GIP expands its flagship equity strategy to 11 target countries in Asia and Latin America and aims to take advantage of the investment opportunities in the infrastructure sector in these regions. It has a focus on China, India, Indonesia, Malaysia, the Philippines and Vietnam in Asia, and Brazil, Chile, Colombia, Mexico, and Peru in Latin America.
“The infrastructure opportunity in emerging markets countries is significant. While global economic growth may be decelerating, GIP believes that conditions in target countries for GIP EM remain constructive and present an attractive investing environment,” said James Amine, GIP’s Partner and Head of Emerging Markets.
GIP’s portfolio in Asia includes India-based independent telecom tower company Ascend Telecom Infrastructure Limited; liquid storage services provider East India Petroleum; offshore wind developer and operator Skyborn Renewables; and renewable energy power producer Vena Energy.
It raised over $22 billion for its last flagship fund—Global Infrastructure Partners IV—in 2019 and has invested in several international airports, including Edinburgh, Sydney, and London Gatwick airports.
Earlier this year, BlackRock agreed to buy GIP for over $12.5 billion in cash and stock, in a deal expected to close in the third quarter of 2024.
GIP has approximately $106 billion in assets under management, and offices in Brisbane, Dallas, Delhi, Hong Kong, London, Melbourne, Mumbai, Singapore, Stamford and Sydney.
Infrastructure investments have been getting more attention and allocations from alternative asset managers in recent times given its defensive nature.
