Partners Group’s infrastructure secondaries strategy has pushed its 12-month deployment past the $2bn (€1.75bn) mark following two major transportation transactions worth nearly $600m in total.
The global private markets firm has invested £260m (€302) to act as a co-lead investor alongside StepStone in an £800m first close for a new UK passenger rolling stock platform established by sponsors Aberdeen Investments and Rock Rail.
The platform, which will be used to consolidate five UK passenger rolling stock fleets and fund future opportunities, holds an existing fleet of more than 1,500 vehicles.
Partners Group has also committed $250m as the sole lead investor in a $360m continuation vehicle for a commercial aviation leasing portfolio managed by Avenue Capital.
The firm invested in Avenue Kite Continuation Fund’s global portfolio of 69 mid-life aircraft and aviation projects diversified across 30 airlines.
Dmitriy Antropov, head of infrastructure partnership investments, Partners Group, said the UK passenger rolling stock transaction has “compelling risk-return characteristics, combining downside protection through contracted cashflows and upside potential via investing in further fleets”.
Antropov added: “Demand for new rolling stock in the UK is underpinned by the need to replace ageing fleets, public investment in rail to boost economic growth and decarbonisation initiatives. We look forward to partnering with Aberdeen Investments and Rock Rail to further develop a platform that now manages around 10% of the UK’s passenger fleet.”
Jeremy Semble, head of infrastructure partnership investments Americas at Partners Group, said: “Aircraft leasing is a growing space within the infrastructure asset class. The portfolio is asset-heavy with contracted cashflows and high barriers to entry, reflecting significant capex requirements and maintenance needs.
“This makes it a great fit for our infrastructure secondaries strategy, where we look to provide investors with diversified exposure to sectors with resilient demand and strong growth potential.”
Marc Lasry, co-founder and CEO of Avenue Capital, said: “This new continuation vehicle provided our existing limited partners with a compelling liquidity option and has allowed us to once again partner with Partners Group via a continuation vehicle, providing them with exposure to our strong portfolio of aviation projects that we have assembled over the past decade.
“Our aviation team, led by Shawn Foley, senior portfolio manager, looks forward to continuing to realise the value of the projects in the Avenue Kite Continuation Fund in a favourable market environment for such assets.”
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