(Bloomberg) -- Alinda Capital Partners LLC's newest infrastructure fund will look a little different from its earlier iterations and those of rivals.
The firm, which counts London's Heathrow Airport and Heathrow Express among its holdings, will not make on any midstream or traditional energy deals with its new vehicle, dubbed Alinda Infrastructure Fund IV, people with knowledge of the matter said. It is targeting $2 billion for the fund and a preferred return to investors of 8% annually, according to a document reviewed by Bloomberg, which shows that it'll invest over five years, or half the fund's decade-long life.
A representative for the infrastructure-focused investment firm, which has offices in London and Greenwich, Connecticut, declined to comment.
Alinda, led by chairman Chris Beale and managing partners Andrew Bishop and Jim Metcalfe, raised $1 billion in 2018 for its most recent vehicle from investors including Washington State Retirement System and Edinburgh-based Lothian Pension Fund, according to data compiled by Bloomberg. This month, Alinda acquired Glide Group, a U.K. broadband provider, and earlier this year sold its stake in gas-meter company Energy Assets Group.
Energy Holdings
The firm's energy exposure includes a stake in Maurepas Pipeline LLC which it acquired from SemGroup Corp. in 2018. It has invested in Howard Midstream Energy Partners LLC, which has operations in the Permian Basin, Eagle Ford Shale and Marcellus Shale, as well as Catalyst Midstream Energy Partners LLC, which operates in the Delaware Basin of the Permian.
Investments in U.S. oil and gas pipelines have delivered mixed performance for infrastructure investors, which typically make wagers in transport, renewables and utilities, midstream and energy, waste and water, and digital communications. Fluctuations in energy prices, known as commodity risk, can affect returns.
Alinda-backed Martin Midstream Partners LP said in a filing last month that there's “substantial doubt” about the partnership's ability to continue as a going concern. Global Infrastructure Partners-backed EnLink Midstream LLC has laid off staff and slashed its cash payout.
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