Energy
Tuesday, December 12th, 2023 3:17 pm EDT
Key Points
- Successful Fundraising and Investor Interest: The Asia-focused infrastructure private equity fund, Seraya Partners Fund I, has surpassed its initial target by raising $800 million, attracting investments from major global asset managers, including BlackRock. The successful closure highlights a growing interest in the infrastructure asset class, particularly in the Asia-Pacific markets and Southeast Asia, amid market volatility. Investor interest has been on the rise in recent years, driven by a desire for stable returns, especially in the face of high inflation and increased volatility in public markets.
- Mid-Market Focus for Energy Transition and Digital Infrastructure: The fund is strategically targeting mid-market investments with the aim of enhancing energy transition and digital infrastructure development in the specified regions. James Chern, Chief Investment Officer and Managing Partner at Seraya Partners, emphasizes the attractiveness of the mid-market infrastructure space in Asia, noting that mid-market valuations are typically 30% lower than large-cap deals in Asia, the U.S., and Europe. The fund’s focus on energy transition and digital infrastructure aligns with the pressing need to address Asia’s trillion-dollar infrastructure gap caused by rapidly expanding cities, climate change challenges, and aging infrastructure.
- Diverse Investor Base and Deployment of Capital: The fund has garnered investments from a diverse group of investors, including the China-led Asian Infrastructure Investment Bank (AIIB), pension fund Alberta Investment Management, sovereign wealth funds, and family offices from North America, Europe, and the Asia-Pacific region. The fund has already deployed half of the raised capital across three platforms. The Asian Infrastructure Investment Bank estimates that $1.7 trillion in annual investment is required through 2030 to meet the current demand for sustainable infrastructure, emphasizing the significance of such initiatives in addressing the region’s infrastructure needs and advancing net-zero ambitions.
Seraya Partners, a Singapore-based firm, has successfully closed its Seraya Partners Fund I, an Asia-focused infrastructure private equity fund, raising $800 million. This exceeds the fund’s initial target of $750 million. Notable global asset managers, including BlackRock, are among the investors participating in the fund. The fund focuses on mid-market investments with the goal of enhancing energy transition and digital infrastructure development in Asia-Pacific markets and Southeast Asia.
James Chern, the Chief Investment Officer and Managing Partner at Seraya Partners, emphasized the attractiveness of infrastructure as an asset class, noting that many major players have yet to concentrate on capital deployment in the mid-market infrastructure space in Asia. He highlighted that mid-market valuations are typically 30% lower than large-cap deals in Asia, the U.S., and Europe.
Investor interest in infrastructure has been on the rise in recent years, driven by a desire for stable returns amid high inflation and increased volatility in public markets. Seraya Partners has secured investments from various prominent entities, including the China-led Asian Infrastructure Investment Bank (AIIB), Alberta Investment Management, sovereign wealth funds, and family offices from North America, Europe, and the Asia-Pacific region.
The fund’s management states that half of the raised capital has already been deployed across three platforms. The Asian Infrastructure Investment Bank estimates that $1.7 trillion in investment needs to be made annually through 2030 to meet the current demand for sustainable infrastructure.
James Chern, formerly with Morgan Stanley, emphasized the urgency to address Asia’s trillion-dollar infrastructure gap caused by rapidly expanding cities, climate change challenges, and aging infrastructure. He sees energy transition and digital infrastructure as crucial elements in bridging this gap and advancing toward net-zero ambitions.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/12/12/blackrock-aiib-among-backers-of-asia-focused-seraya-partners-fund-i.html
