Stonepeak Beats Target With $3.3B Final Closing of Maiden Asia Infrastructure Fund

US private equity firm Stonepeak has reached a final closing of its first Asia infrastructure fund with capital commitments of $3.3 billion, exceeding the vehicle’s hard cap of $3 billion.

The fund represents Stonepeak’s first dedicated Asia strategy and targets infrastructure assets in the communications, transport/logistics and energy sectors, the Manhattan-based company said in a release.

No specific details were disclosed about the fund’s limited partners, which include pension funds, endowments, insurers and other large institutions. Stonepeak said it received “robust demand” from new investors and previous backers of funds managed by the firm, whose portfolio companies include Singapore-based data centre startup Digital Edge.

“The strong demand for this fund underscores Asia’s compelling long-term economic and demographic tailwinds, and is a resounding acknowledgement by our partners, including many of the world’s most sophisticated investors, that Stonepeak’s team is well positioned to capitalise on the associated investment opportunities,” said Hajir Naghdy, senior managing director and head of Asia and the Middle East at Stonepeak.

Pan-APAC Mandate

Stonepeak Asia Infrastructure Fund’s mandate spans the whole of Asia Pacific, both developed and high-growth countries, and the vehicle has made six investments to date across all target sectors, the firm said.

Stonepeak’s communications and digital infrastructure investments include Digital Edge, which has deployed and committed more than $1 billion in capital to data centre projects in Japan, China, India, Indonesia, South Korea and the Philippines.

In 2022, Stonepeak set up a joint venture with Singapore-based builder Equalbase to develop logistics assets across the region, starting with an Equalbase project in Seoul.

In January of this year, Stonepeak invested in AGP Sustainable Real Assets, a Singapore-based firm specialising in eco-friendly infrastructure, with market sources pegging the fresh capital at as much as $650 million.

Meeting Regional Needs

In light of the region’s pressing needs in digital assets, green energy and logistics, Stonepeak’s latest fundraising comes at a critical time, according to the firm, which has $61.1 billion in assets under management.

“We are grateful for our investors’ support as we continue to deploy our strategy to meet these needs and create value for all of our stakeholders by leveraging our deep sector expertise and ‘boots-on-the-ground’ approach to asset management,” said Stonepeak co-presidents Jack Howell and Luke Taylor.

Stonepeak’s milestone comes after KKR last month announced the $6.4 billion final closing of its second Asia-dedicated infrastructure fund, with the US buyout giant having already deployed more than half of the vehicle’s committed capital across 10 investments.

The fund, dubbed KKR Asia Pacific Infrastructure Investors II, is the largest-ever pan-regional APAC infrastructure fund to have been raised, overtaking the $3.9 billion closing of KKR’s inaugural Asia Pacific Infrastructure Investors in 2021, according to the Manhattan-based firm.

In December, Singapore-based private equity shop Seraya Partners revealed an $800 million capital raise for its inaugural pan-Asia infrastructure fund with backing from Canada’s Alberta Investment Management Company and US asset management titan BlackRock.