Global Infrastructure Partners LP (GIP) and Brookfield Asset Management Inc. have plans to raise about US$27 billion for two new infrastructure funds.
To be more specific, GIP aims to raise as much as US$15 billion for its Global Infrastructure Partners III, and Brookfield Asset Management aims to raise as much as US$12 billion for its infrastructure fund.
These two funds are expected to be the largest ever raised dedicated to the infrastructure sector.
Global Infrastructure Partners III will follow Global Infrastructure Partners II, which completed fundraising for its second fund on 2 October 2012 with total commitments of US$8.25 billion.
GIP focuses on larger scale investments in assets that provide essential services, have high barriers to entry, and offer significant governance positions. GIP targets opportunities in OECD countries and high quality assets with the potential for attractive risk-adjusted returns in selected non-OECD countries.
Brookfield's last infrastructure fund, Brookfield Infrastructure Fund II LP, closed in October 2013 with equity commitments totaling US$7 billion, creating a global fund that invests in infrastructure, with a focus on transportation, renewable power, utilities, and energy assets in North and South America, Europe and Australasia.
Commitments to the fund exceeded the original US$5 billion fundraising target, reflecting strong investor demand.