HIG raises $1.3bn for latest infrastructure fund

HIG Capital has raised $1.3bn (€1.2bn) for its latest infrastructure fund, receiving support from a diverse and global group of limited partners that include sovereign wealth funds, public and private sector pensions and insurers.

The manager said HIG Infrastructure Partners was also backed by asset managers, consultants, foundations, endowments, and family offices in North America, Europe, Asia, and the Middle East.

The fund, which seeks to “make control-oriented, infrastructure equity investments focused on the middle market segment”, has so far made seven investments across North America and Europe, two of which are expected to close in the third quarter of the year.

As previously reported, HIG Infrastructure Partners acquired Eysa, a company that provides an integrated solution to address mobility requirements across smart traffic management, access control, on-street parking, off-street parking, tax management, and towing.

In a joint statement, Sami Mnaymneh and Tony Tamer, co-founders of HIG, said: “We greatly appreciate the strong support from our investors for our Infrastructure strategy. Their confidence in our investment approach to infrastructure underscores the power of the firm’s platform and our ability to generate strong returns through value creation in the underserved middle market.”

Andrew Liau and Ed Pallesen, co-heads of HIG’s infrastructure arm also said: “The fund is well-positioned to capitalise on opportunities in the less efficient middle market. HIG’s unique platform provides us with a demonstrated, differentiated sourcing model and a deep pool of resources focused on operational value creation.

“We believe this allows us to generate strong returns, especially as the industry adjusts to higher interest rates and macro volatility.” 

Jordan Peer Griffin, executive managing director and global head of capital formation, said: “We are pleased with the strong backing by many of HIG’s long-standing platform investors for the fund, as well as by many new investors from around the world.”

To read the latest IPE Real Assets magazine click here.