Blackstone targets $5bn for infrastructure fund

Blackstone aims to be among the infrastructure mega-funds, having put a pre-marketing target range of $3bn to $5bn on its debut infrastructure fund. Rival KKR is raising $4bn for its maiden infrastructure fund, while Macquarie is seeking $6bn for it second global infrastructure fund and €5bn for its second European infrastructure fund.

The Blackstone Group aims to raise between $3 billion and $5 billion for its debut infrastructure fund.

Blackstone Infrastructure Partners has not yet begun fundraising but is expected to use Blackstone affiliate Park Hill as its placement agent, a market source familiar with the firm told sister news site InfrastructureInvestor.

Calls to Blackstone and Park Hill were not returned by press time.

The $3 billion to $5 billion fundraising range, if successful, would catapult Blackstone into the ranks of the larger infrastructure funds in the market. Fellow private equity powerhouse Kohlberg Kravis Roberts is currently raising its first infrastructure fund targeting roughly $4 billion, while Macquarie is seeking $6 billion for Macquarie Infrastructure Partners II and €5 billion for Macquarie European Infrastructure Partners III, according to data from placement agent Probitas Partners. 

Blackstone launched its infrastructure efforts in the middle of 2008. It hired Trent Vichie and Michael Dorrell from Macquarie Capital in New York as founding partners of Blackstone Infrastructure Partners.

At Macquarie, Dorrell was a senior managing director making investments in utilities, roads, aviation, social infrastructure and energy. Vichie, a managing director at the firm, was involved in a number of landmark transactions in the US, including the 2005 long-term lease of the Chicago Skyway for $1.83 billion. He also worked on Macquarie’s lease of the Indiana Toll Road for $3.8 billion in 2006 and its bidding for the Pennsylvania Turnpike last year.