Fortress Investment Group LLC (FIG:US) plans to seek $1 billion for a global infrastructure fund, building on similar investments made by its private-equity pools, two people with knowledge of the situation said.
Fortress Infrastructure Partners will start raising money in June or July and make long-term investments in such areas as aviation, telecommunications, intermodal freight transport and energy, according to the people, who asked not to be identified because the information isn’t public. Fortress private-equity funds have made infrastructure investments over the last 10 years, including in cell towers, railroads, ports and aviation.
Gordon Runte, a managing director at the New York-based firm that oversees private-equity and hedge funds, declined to comment on the plan.
The dedicated fund is part of the firm’s move away from larger, broader private-equity pools toward more sector-specific vehicles. Fortress, which oversaw $55.6 billion as of March 31, this year raised a $400 million worldwide transportation fund that will invest in assets such as airplanes, helicopters, engines and ships.
Fortress hopes to list that vehicle by the end of the year, said Wesley Edens, head of the private-equity business, in a first quarter earnings call earlier this month.
“The private infrastructure fund raise is designed to complement that with more private-equity-type opportunities, both for assets and for companies, and we have just started the process with that,” Edens said.
Joseph Adams will be chief investment officer for the new fund and Edens will be co-chairman of its investment committee, according to one of the people. Jonathan Atkeson, Ken Nicholson and Robert Gibbons will help manage the new fund, which will have a 10-year life, the person said.
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