Landmark’s Infrastructure Partners II terms revealed

Infrastructure Partners II is targeting $1.5bn, more than treble the amount raised for Landmark's first infrastructure secondaries programme.

Terms of Landmark Partners‘ latest infrastructure secondaries fund have been disclosed in a document presented to the City of Baltimore Fire & Police Employees’ Retirement System.

Landmark Infrastructure Partners II is targeting $1.5 billion to invest across the utilities, transportation, communications, renewables and energy infrastructure sectors, a big increase on its 2015-vintage Real Assets 1a and 2016-vintage Real Assets 1b predecessors which raised a combined $455 million.

Secondaries Investor revealed in September that the Simsbury, Connecticut-headquartered firm was in market with Fund II and had raised $500 million so far.

Fund II is targeting final close in the first quarter of next year, the document noted. It has a 1 percent management fee on committed capital during the investment period, which lasts four years from final close. For the four years after that the management fee will be 1 percent of invested capital and 1 percent of net asset value thereafter. Carried interest is 12 percent, the preferred return 7 percent and the GP will account for at least 1 percent of total commitments.

Fund II is targeting a net internal rate of return of between 10 percent to 12 percent and a net multiple of 1.4x. Leverage cannot exceed 25 percent at the fund level. Landmark RA 1a and RA 1b have achieved net IRRs of 17.1 percent and 12.4 percent, respectively, and total-value-to-paid-in multiples of 1.3x and 1.2x, the document noted.

Energy and infrastructure funds accounted for 4 percent of funds to transact on the secondaries market in the first half of 2019 by number, according to advisor Greenhill. Infrastructure accounted for 9 percent of GP-led transactions by transaction value over the same period.

Landmark did not respond to a request for comment.