Stonepeak Infrastructure Partners, the fourth-largest infra manager according to the II 50, is planning to join the ranks of GPs looking to hold onto single assets for longer via the secondaries market.
The New York-headquartered firm wants to raise a continuation fund for Cologix, a Colorado-based data centre developer, acquired by its $3.5 billion Stonepeak Infrastructure Fund II in 2017, sources told affiliate title Infrastructure Investor.
Stonepeak initially committed $828 million to the asset, which later reduced to $588 million following an LP co-investment sell-down process.
It is understood that about half of the overall Stonepeak portfolio is within the digital infrastructure and communications sector and the firm is looking to hold on to one particular asset for a longer.
Stonepeak is understood to be looking for $3 billion for the continuation fund, with the growth prospects for the company higher than envisaged at the time of the acquisition.
The firm has also reached an anchor close on its maiden Asia-Pacific fund on about $1.4 billion. The initial close means the US-based manager has raised half of its $3 billion target for the Stonepeak Asia Infrastructure Fund, which was launched earlier this year. The strategy is looking to invest in telecoms, transportation, logistics and energy transition, seeking returns in the high teens. Stonepeak Asia invested alongside the firm’s fourth flagship fund this month in New York-listed Teekay LNG in a $6.2 billion deal.
Stonepeak has also been making significant additions to its team in the region recently, hiring Tharma Kunaratnam from Macquarie Group in September as a managing director in Singapore to focus on digital infrastructure. It is also looking to build out a team in China as it seeks opportunities in the mainland. The Asia strategy is led by senior managing directors Hajir Naghdy and Darren Keogh.
Fund IV hard-cap extension
Stonepeak remains in fundraising for its fourth flagship, Stonepeak Infrastructure Fund IV, which has raised about $11.5 billion, sources have told Infrastructure Investor. The figure exceeds the $10 billion originally targeted by the fund when launched in 2019.
With fundraising nearing the $12 billion hard-cap, the sources said Stonepeak is set to request an extension from LPs of up to $14 billion. A final close is planned in January.
The fund is targeting a gross IRR of 15 percent and a net return of 12 percent. Stonepeak was generating a gross IRR of 19 percent across its funds as of March 2021, according to pension fund documents.
In addition to the Teekay deal, Fund IV has significantly invested in digital infrastructure, completing its largest deal in the sector in August with the $8.1 billion acquisition of Astound Broadband in the US. It has also agreed to a $2.7 billion deal for the Latin American communications business owned by Lumen Technologies.
Stonepeak declined to comment on the fundraising and continuation processes.