StepStone picks up 3i infra stakes

StepStone tapped its latest secondaries fund to acquire George Kaiser Family Foundation's entire stake in the six-asset vehicle.

StepStone’s in-market secondaries fund is one of the vehicles it used to acquire stakes in an India-focused 3i Group infrastructure fund from a US child welfare foundation.

Tulsa, Oklahoma-based George Kaiser Family Foundation transferred its entire interest in 3i India Infrastructure Fund (3iIIF) to six StepStone vehicles from its GKFF Ventures I fund, according to a UK regulatory filing.

StepStone used StepStone UWF Secondary Opportunities Fund, Stepstone Atlantic Fund, Stepstone Secondary Opportunities Fund II, Stepstone Stepstone Secondary Opportunities Fund II Offshore Holdings, Stepstone Secondary Opportunities Fund III, and Stepstone Secondary Opportunities Fund III Offshore Holdings vehicles to acquire the interest.

3i India Infrastructure Fund is a 2007-vintage $1.2 billion vehicle focusing on the Indian infrastructure market. Its investment period ended in November 2012 and it currently holds a portfolio of six investments in the power and transportation sectors, according to 3i’s website.

The existing portfolio companies include port operator Krishnapatnam Port, project company KMC Roads, road builder Supreme Infrastructure India and road infrastructure developer Soma Enterprise.

Limited partners which have invested in 3iIIF include Royal London Group, Lothian Pensions, Partners Group and First Gulf Bank, according to PEI data.

As of 31 March, 3iIIF’s net asset value was 0.75x its investment cost in Indian rupees and 0.59x in sterling, according to the annual report.

Stepstone Secondary Opportunities Fund III has a $750 million target, as Secondaries Investor reported on Tuesday. The fund had raised almost $94 million as of January, according to PEI data.

Stepstone Secondary Opportunities Fund II held a final close close on $450 million, above its $350 million target in 2013. Stepstone Atlantic Fund is a 2009-vintage $108 million global fund of funds, according to PEI data.

George Kaiser Family Foundation was established in 1998 by American philanthropist George Kaiser with a focus providing children with equal opportunities, according to its website. Its GKFF Ventures I fund focuses on venture, growth capital, mid-market, turnaround and buyout investments.

StepStone declined to comment. George Kaiser Family Foundation did not respond to requests for comment. 3i did not respond to questions about the deal.