GIP raises $2.9 bn in infrastructure credit funds

Private equity firm Global Infrastructure Partners (GIP) raised funds that invest in the debt and equity of infrastructure assets in the oil and gas, renewable energy, power and transport sectors.

The firm has said that the GIP raised $1.4 billion for its second credit fund, GIP Capital Solutions Fund II, and $1.5 billion for the successor fund, GIP Spectrum Fund from investors and individuals across different countries.

The spectrum fund is to be used for making debt investments in infrastructure assets in sectors such as power, midstream oil and gas, transport, and renewable energy, mostly in Organization for Economic Cooperation and Development (OECD) countries.

The GIP credit funds made several investments in the previous year acquiring $325 million of the $400 million debt notes for the construction of Whistler Pipeline, a natural gas pipeline in Texas. A $325 million term loan to Mexico's fourth-largest independent power company, Saavi Energia. A $110 million term loan to Colombian port terminal, Puerto Antioquia.

GIP was founded by former Credit Suisse executive Adebayo Ogunlesi in 2002 and is now one of the world's largest infrastructure investors. Assets worth $70 billion are under its management.