Partners Group has completed the final closing of its infrastructure secondaries program at more than $5.5 billion, making it one of the largest dedicated fundraises focused on the strategy. The program consists of a $1.7 billion closed-ended fund, customized mandates and additional investment vehicles that participate alongside the main fund.
New clients accounted for more than 70% of the capital committed to the closed-ended vehicle. The broader investor base includes institutional clients from Europe, the Americas, the Middle East and Asia-Pacific.
Infrastructure secondaries involve purchasing existing private infrastructure fund interests or providing capital for transactions that allow investors and fund managers to retain, sell or restructure mature assets.
The strategy can provide liquidity to limited partners seeking to exit existing investments and to general partners seeking more time or capital to continue owning selected assets.
Partners Group’s program invests across general partner-led continuation transactions, limited partner-led portfolio sales and other complex secondary opportunities.
A GP-led transaction is typically initiated by a private markets manager and may involve transferring one or more assets from an older fund into a newly created continuation vehicle. Existing investors may sell their interests or continue participating in the assets.
An LP-led transaction generally involves an investor selling interests in one or more private funds to another buyer.
The new Partners Group program is already more than 25% committed across 20 seed investments. The firm has deployed approximately $2 billion through its infrastructure secondaries strategy over the last 12 months and said it maintains a strong pipeline of potential transactions.
Recent investments include a lead commitment to a continuation vehicle holding a global commercial aviation leasing portfolio with 69 assets and a diversified customer base.
Partners Group also co-led an investment in a continuation vehicle for a next-generation rolling stock leasing platform operating across the United Kingdom’s core railway network.
The aviation investment provides exposure to infrastructure supporting global passenger and cargo transportation, while the rolling stock transaction involves the trains and related assets leased to operators using the British rail system.
Partners Group has been investing in infrastructure secondaries since 2006 and has completed more than 70 transactions globally.
The firm reported fully realized net internal rates of return of 18% across its infrastructure secondaries investments since inception.
Net internal rate of return measures an investment program’s annualized performance after accounting for fees and other costs. Past returns do not guarantee the performance of the newly closed program.
Partners Group said its approach applies direct-style underwriting to secondary transactions. This involves analyzing the underlying assets, business plans, operations and value creation opportunities rather than relying primarily on fund-level information.
The strategy is intended to help the firm evaluate complex portfolios and structure transactions that address the liquidity needs of both fund managers and investors.
Partners Group previously provided infrastructure secondaries exposure through customized mandates and its Global Infrastructure fund series, which is currently on its fifth vintage.
The closing follows Partners Group’s recent completion of its fourth direct infrastructure program at more than $15 billion.
Combined, the firm’s latest direct infrastructure and infrastructure secondaries programs have raised more than $20 billion.
Partners Group manages more than $186 billion in assets across private equity, private credit, infrastructure, real estate, royalties and special opportunities.
The firm employs approximately 2,000 professionals globally and manages both pooled investment programs and customized mandates for institutional and other private markets clients.
KEY QUOTE:
“We have one of the longest track records in the infrastructure secondaries market. Through our differentiated direct-style underwriting approach, we have been able to deliver very attractive returns across cycles.”
“This approach positions us as a solutions provider as the infrastructure secondaries market becomes an increasingly important tool in providing liquidity to LPs and GPs alike. We are very grateful for the trust our clients place in us.”
Dr. Dmitriy Antropov, Head of Infrastructure Partnership Investments at Partners Group
