New York’s GIP in talks to raise up to $1b for India-focused infra fund

Photo: Mint

New York-based infrastructure fund manager Global Infrastructure Partners (GIP) has initiated talks to raise a India-focused infrastructure fund with a targeted corpus of as much as $1 billion, said two people aware of the development.

GIP entered India last year after acquiring the infrastructure investment platform of IDFC Alternatives. Prior to the acquisition, IDFC Alternatives had raised two infrastructure funds—India Infrastructure Fund and India Infrastructure Fund II—aggregating $1.8 billion.

“GIP has initiated a soft launch of the fund and has started speaking with a few limited partners (LPs, investors in a private equity fund). They are aiming to raise around $1 billion,” said the first person cited above, requesting anonymity as he is not authorized to speak to reporters. “The fund will largely focus on acquiring operating assets in areas such as roads, renewables and transmission but could also look to invest in other infrastructure assets.”

Last December, a senior GIP India executive said besides buyout deals, the group will also look to assist global infrastructure developers and operators willing to set up shop in India to de-risk their equity exposure. GIP will also explore investment opportunities in infrastructure projects such as airports, fibre optic networks and data centres for 5G roll out, the executive said.

Mint reported on 13 August that Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) is in exclusive talks with GIP to acquire the roads totaling 470 route km.

A GIP spokesperson declined to comment on its fundraising plans.

The HC1 portfolio, comprising seven road assets—five toll roads and two annuity roads—is spread across seven states and generates a consolidated revenue of 620 crore. The construction of roads was funded by IDFC Alternatives’ second infrastructure fund.

GIP’s India dedicated infra fund will add to the large amount of foreign investments that has been flowing into India’s infrastructure sector from long-term investors such as pension funds, sovereign funds and insurance companies.

The PE firm hired Hardik Shah from Brookfield Asset Management in October to lead its infrastructure investments business in India. Homegrown financial services group Edelweiss’ alternative investments arm is another asset manager in the market to raise an infrastructure fund. Edelweiss marked the first close of its Edelweiss Infrastructure Yield Plus Fund in May, raising around 2,000 crore. Mint reported in December that Edelweiss is looking to raise another4,000-4,500 crore for its infrastructure fund Edelweiss Infrastructure Yield Plus Fund.

Last year, IDFC Alternatives also sold its private equity real estate investments business to Bahrain-based asset manager Investcorp.

This article was first published on livemint.com.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.