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Backers of $800 million include China-led AIIB and BlackRock Infrastructure Fund with a Focus on Asia

A private equity fund focused on Asia’s infrastructure, the Seraya Partners Fund I, has successfully raised $800 million, surpassing its initial target of $750 million. Among the investors are major global asset managers, including BlackRock. The fund, managed by Singapore-based Seraya Partners, concentrates on mid-market investments with a specific focus on enhancing energy transition and digital infrastructure in Asia-Pacific and Southeast Asia.

According to James Chern, Chief Investment Officer and Managing Partner at Seraya Partners, infrastructure remains an attractive asset class, with the mid-market segment presenting a 30% lower valuation compared to larger deals in various regions. The interest in infrastructure investments has been on the rise in recent years, driven by the desire for stable returns amid high inflation and increased market volatility.

Seraya Partners’ major investors include the China-led Asian Infrastructure Investment Bank (AIIB), pension fund Alberta Investment Management, sovereign wealth funds, and family offices from North America, Europe, and Asia-Pacific. The fund, managed in Asia, has already deployed half of the raised capital across three platforms.

Chern emphasized the pressing need to address Asia’s growing infrastructure gap, estimated by the AIIB to require $1.7 trillion in annual investments through 2030 to meet sustainable infrastructure demand. He highlighted energy transition and digital infrastructure as pivotal in bridging this gap and achieving net-zero ambitions, citing Asia’s expanding cities, climate change challenges, and aging infrastructure.

This successful fundraise reflects the increasing investor appetite for infrastructure investments in the Asian region, with other major players like KKR having raised substantial amounts for their Asia-Pacific infrastructure funds in recent years. The mid-market focus of Seraya Partners aims to capitalize on the attractive valuations in this segment compared to larger deals, positioning itself as a key player in advancing sustainable infrastructure development in Asia.