Partners Group: USD 8.5 billion for third direct infrastructure program
Baar-Zug, Switzerland — Partners Group, a leading global manager of private market assets, has received a total of USD 8.5 billion from its clients for its third direct infrastructure program. The program is based on Partners Group’s third direct infrastructure fund, which received $6.4 billion in new capital commitments. In addition, commitments of $2.1 billion were made from other private market programs and customized client solutions that will invest in parallel with the program.
Juri Jenkner, Partner, Head Private Infrastructure, says: “We are grateful for the continued trust our clients have placed in our transformative investment strategy. We believe our thematic investment approach and platform expansion capabilities uniquely position us to build a portfolio of next-generation infrastructure projects for our clients.”
The completion of the fundraising follows an intense period of investment activity for Partners Group. In 2021, a total of $5.4 billion was invested in infrastructure assets and companies that reflect Partners Group’s thematic investment philosophy. These include: EOLO, Italy’s leading fixed wireless broadband access provider; GREN, one of the largest district heating platforms in the Baltic States; Unity Digital, a wireless telecommunications infrastructure platform in the Philippines; Dimension Renewable Energy, a distributed energy platform focused on community solar and battery storage in the U.S.; Resilient, a distributed water infrastructure platform in the U.S. and Canada; and North Star, a European operator of specialized vessels for offshore wind maintenance.
The remainder of the program will invest on behalf of investors globally and will focus on infrastructure in strategic thematic areas related to the overarching Giga themes of Digitalization & Automation, New Living and Decarbonization & Sustainability. In doing so, Partners Group pursues a platform expansion strategy that targets companies or assets in infrastructure sub-sectors that are showing above-average growth due to transformative trends.
Part of the program is invested in next-generation infrastructure that contributes to improved sustainability and supports the UN Sustainable Development Goals. Therefore, clean energy, water treatment and reuse, and data centers powered by renewable energy are among Partners Group’s thematic focus areas. Once invested, the ESG & Sustainability team works hand-in-hand with the investment teams to develop ESG-focused value creation initiatives for each investment project.
Esther Peiner, Managing Director, Private Infrastructure Europe, comments: “We strive to generate sustainable returns for our investors while creating a positive impact for our wider stakeholders. Our approach consists of thematic investments combined with practical, platform-based value creation strategies. They aim to develop next-generation infrastructure and generate returns that are protected from economic instability. Given the uncertainty caused by the pandemic and the inflation concerns that still exist, this approach is more relevant than ever.”
Investors in Partners Group’s third direct infrastructure program include both new and existing clients, including public and corporate pension funds, sovereign wealth funds, insurance companies, endowment funds and foundations. Approximately one-third of the capital commitments came from outside Partners Group’s European home market, reflecting growing investor demand for globally diversified and thematically focused infrastructure portfolios. Partners Group’s founders, partners and other employees have also invested significantly in the program.
Vittorio Lacagnina, Managing Director, Client Solutions, concludes, “The successful completion of the fundraising reflects the solid performance of our transformative investment strategy and resilience of the portfolio, which we have demonstrated in the face of a protracted pandemic and rising inflation. The program benefits from a sizable seed portfolio characterized by strong investment activity, potentially mitigating the J‑curve. The program was launched in a market environment where accelerating behavioral and structural changes are creating compelling opportunities for institutional investors.”
Partners Group’s previous flagship direct infrastructure fund currently has a net IRR of 15.5% and a net TVPI of 1.51x (fund closed in 2018; performance as of September 30, 2021. Past performance is not indicative of future results. There can be no assurance that similar results will be achieved in the future. Values are for illustrative purposes only).