Strategic Partners amasses almost $2bn for infra secondaries so far

The Blackstone unit previously raised $3.75bn for its third programme focusing on the asset class.

Blackstone’s Strategic Partners unit has made headway with capital raising for its latest infrastructure programme amid heightened interest in the asset class.

The New York-headquartered firm raised an initial $1.8 billion for Strategic Partners Infrastructure IV, according to details shared on the firm’s Q4 and full year 2023 earnings call last week.

The vehicle, which launched in August last year, according to Secondaries Investor data, has an undisclosed target.

Strategic Partners raised $3.75 billion in a final close for the fund’s predecessor, Strategic Partners Infrastructure III, in 2020, hitting its target. Investors in that fund include Cathay Life Insurance, Teachers’ Retirement System of the State of Illinois and The University of Texas/Texas A&M Investment Management Company.

Fund III generated a 32 percent net internal rate of return and a 1.4x multiple on invested capital as of 31 December, according to Blackstone’s results.

Last year was Blackstone’s third-best fundraising year ever, chief financial officer Michael Chae said on the call.

Infrastructure secondaries funds raised $7.39 billion last year in final closes, slightly lower than the $8.39 billion collected in 2022, according to preliminary data from Secondaries Investor.

Recent fund closes include Pantheon’s $5.3 billion haul in December for Global Infrastructure Fund IV, which beat its $3.5 billion target and is now the largest infrastructure secondaries programme ever raised.