Partners Group has closed its fourth direct infrastructure program at more than $15 billion. The program is over 50% larger than the firm’s previous infrastructure vintage.
The program includes a closed-end fund and customized investment solutions that invest alongside it. Capital commitments came from investors across North America, Europe, the Middle East and Asia-Pacific.
Participants included public and corporate pension plans, sovereign wealth funds, insurance companies, endowments, foundations, banks, consultants and general partners. The investor base includes both new and existing Partners Group clients.
Partners Group’s direct infrastructure strategy focuses on developing next-generation energy, utility and other essential infrastructure platforms. The firm primarily targets mid-market companies that it believes can provide resilient cash flows and substantial operational improvement opportunities.
The strategy has generated a net total value to paid-in multiple of 2.2 times and a net internal rate of return of 20.8% across 21 realized exits since its inception. Net TVPI compares the value created by a fund with the capital contributed by investors, while net IRR measures annualized performance after applicable fees and expenses.
Partners Group said the mid-market provides a broad selection of high-quality infrastructure businesses that can be expanded through operational improvements, acquisitions and new project development. The firm also believes the segment offers deeper transaction markets that can support future exits.
The new program is already more than 40% committed across a seed portfolio of 11 assets. These investments reflect the firm’s focus on power generation, energy security and the infrastructure required to support artificial intelligence.
The portfolio includes Life Cycle Power, a U.S. provider of mobile power generation for data centers and industrial customers facing grid constraints. Its systems can provide temporary or transitional electricity while users wait for permanent grid connections or additional utility capacity.
Another investment is Digital Halo, a Singapore-based data center platform serving cloud computing and AI demand across Asian markets. The company is positioned to benefit from rising requirements for digital infrastructure, computing capacity and reliable power.
The program has also invested in green flexibility, a German developer of large-scale battery energy storage systems. These facilities help balance power grids as wind and solar generation introduce greater variability into electricity supply.
Battery storage systems can collect electricity when production exceeds demand and release it when additional power is required. This capability can improve grid stability and support the continued expansion of intermittent renewable energy sources.
Partners Group plans to continue building a diversified infrastructure portfolio through a global pipeline of potential investments. The firm will seek opportunities where long-term demand trends can support expansion while infrastructure characteristics provide downside protection.
The program is similar in size to Partners Group’s fourth and fifth direct private equity programs, which each closed at more than $15 billion in 2021 and 2024. The firm is currently raising its sixth direct private equity program with a comparable target.
Partners Group manages more than $186 billion across private equity, private credit, infrastructure, real estate, royalties and special opportunities. The firm employs approximately 2,000 professionals globally.
KEY QUOTES:
“The raising of our largest direct infrastructure program to-date is a testament to the appeal of our strategy as well as its top quartile performance. Investors are increasingly seeking the stable, inflation-protected returns and downside protection that infrastructure can offer. Our thematic approach and ability to drill down into related sub-sectors has enabled us to build a highly diversified portfolio of primarily mid-market companies that offer significant value creation potential. We look forward to executing across a robust global pipeline.”
Esther Peiner, Global Head of Infrastructure at Partners Group
