On Monday 20 July, Partners Group announced the final close of its fourth direct infrastructure investment programme. Having raised over $15bn, it has exceeded the previous fund’s raise by more than 50%.
The programme does not consist of a single fund. It comprises a closed-end fund as well as bespoke solutions investing alongside it. The commitments come from new and existing investors, including public and corporate pension funds, sovereign wealth funds, insurers, endowment funds, foundations, consultants and banks. They come from North America, Europe, the Middle East and the Asia-Pacific region. However, Partners Group does not disclose their identities or the breakdown of the amounts.
Eleven assets already in the portfolio
Over 40% of the programme has already been committed to an initial portfolio of 11 assets. Partners Group highlights three of these that illustrate its current priorities.
In the United States, Life Cycle Power provides mobile power generation capacity. Its equipment is designed, in particular, to address the constraints on electricity grids and to supply power to data centres and industrial sites.
In Singapore, Digital Halo is developing a data centre platform designed to meet regional demand for cloud services and AI-related computing capacity.
In Germany, Green Flexibility is developing large-scale battery-based electricity storage systems. These facilities are intended to help ensure the flexibility of the grid in the face of increasing intermittent generation from renewable sources.
The programme therefore focuses on three main areas: electricity generation, the development of the infrastructure required for AI, and energy security and independence. Partners Group states that it favours medium-sized companies and platforms, where the fund manager believes there are greater opportunities for operational transformation and exit.
“Investors are increasingly seeking stable, inflation-protected returns and the risk protection offered by infrastructure,” says Esther Peiner, global head of infrastructure at Partners Group. She believes that the asset manager’s thematic approach has enabled it to build a diversified portfolio of companies primarily positioned in the mid-market segment.
Performance figures provided by the fund manager
Partners Group states that, since the launch of its direct infrastructure investment strategy, it has generated a net multiple of 2.2 times the capital invested and a net internal rate of return of 20.8%, based on 21 exits. These performance figures have been provided by the fund manager and have not been independently verified.
The fund is of a size comparable to Partners Group’s fourth and fifth direct private equity funds, which were closed at over $15bn in 2021 and 2024, respectively. The fund manager is currently raising its sixth direct private equity fund, with a target of a similar scale.
Partners Group reports that it has more than $186bn in assets under management and around 2,000 employees worldwide.
