Return to search

Strategic Partners closes largest infra secondaries fund

Strategic Partners Real Assets II has hit final close on $1.75bn, edging out Ardian's $1.7bn ASF VII Infrastructure.

Blackstone Strategic Partners has hit the hard-cap on its latest infrastructure secondaries fund, making it the largest yet raised for the strategy.

Strategic Partners Real Assets II has hit $1.75 billion, a few weeks after Secondaries Investor reported that fundraising was approaching the finishing line, according to a statement from the firm.

The former largest infrastructure secondaries fund, Ardian’s ASF VII Infrastructure fund, was set to close last May on $1.7 billion, Secondaries Investor reported.

Investors in SP RA II include sovereign wealth funds, pension funds, financial institutions, endowments, foundations and family offices. The fund began investing in May 2017 and has closed or partially closed 14 transactions, the statement said.

According to data from sister publication Infrastructure Investor, the fund was targeting $1 billion. Investors include Pennsylvania Public School Employees’ Retirement System, which committed $200 million.

Secondaries Investor reported three weeks ago that SP RA II had passed the $1.6 billion mark, made its first sale in April and used the Uruguayan subsidiary of Compass Group, a Pan-American private equity advisor, as a placement agent.

The portfolio of SP RA II is expected to include utility, power generation, energy renewables, transportation, waste management, shipping, parking and midstream and upstream energy industries, according to documents prepared for PSERS’ board in May 2017.

It aims to do deals ranging in size from $100,000 to $150 million or more, and expects a majority of its investments to be in funds managed by US, UK and western European managers. SP RA II will have a 12-year term with four one-year extensions, the PSERS documents reveal.

Since 2000, Strategic Partners has raised $31 billion dedicated to private equity, real estate and infrastructure fund investing, the firm notes on its website.