Global Infrastructure Partners have raised a total of US$15.8 billion for its GIP III fund, which is the firm's largest infrastructure fund.
GIP's is a global leading investor in, and operator of energy, transport and water/waste infrastructure assets.
In 2016, Missoure Local Government Employees Retirement System committed U$100 million to the fund, Maine Public Employees Retirement System (MainePERS) provided US$150 million, and Virginia Retirement System, Richmond, allocated US$200 million.
Prior to that, in December 2015, Oregon Investment Council announced a $400 million investment in the fund.
GIP's business strategy is based on the following approach:
- Investment profile: GIP focuses on larger scale investments in assets that provide essential services, have high barriers to entry, and offer significant governance positions. GIP targets opportunities in OECD countries and high quality assets with the potential for attractive risk-adjusted returns in selected non-OECD countries.
- Proprietary origination: GIP's in-depth knowledge and extensive relationships in the target industry sectors is critical to originate proprietary transactions, conduct effective and informed due diligence, structure investments and identify potential exits.
- Prudent leverage: GIP's view on leverage is that it must ensure that the investments have appropriate risk profiles. The approach reflects GIP's fundamental view that investment discipline and operational value creation, rather than financial engineering, are the keys to successful infrastructure investing.