Bastion Infrastructure Group, the investment firm led by a former chief operating officer of Morgan Stanley (MS:US)’s infrastructure arm, is seeking $2 billion for a debut fund that will invest globally, two people familiar with the matter said.
Bastion Infrastructure Fund I LP will invest in power, water, transportation and energy-related industries in countries that are among the 34 members of the Organization for Economic Co-operation and Development, said the people, who asked not to be identified because the information isn’t public.
The firm, headed by managing partner Ron Lepin, is seeking to take advantage of investor appetite for predictable cash flow and inflation protection by buying and managing long-term cash-producing assets. Bastion, based in Toronto, will compete for capital with several private-equity firms gathering multibillion-dollar funds to make investments related to public works.
I Squared Capital LLC, a New York-based private-equity firm led by former executives of Morgan Stanley’s infrastructure arm, is seeking $2 billion for a global fund. Morgan Stanley’s infrastructure unit plans to seek $4 billion for a second global fund, two people with knowledge of the matter said in May. Toronto-based Brookfield Asset Management Inc. (BAM/A) raised $6.2 billion for a private infrastructure fund, exceeding the $5 billion target, according to a July 9 SEC filing.
Lepin didn’t return an e-mailed request for comment.
Lepin was a managing director at Morgan Stanley and COO of the bank’s $4 billion infrastructure fund, according to Bastion’s website. Prior to Morgan Stanley, he founded the direct infrastructure program at Ontario Teachers’ Pension Plan.
Bastion in June said it hired Wael Elkhouly to head the asset-management division. Elkhouly was previously head of asset management at London-based Eiser Infrastructure Partners LLP. The firm brought on Enrique Fuentes in February as partner on the investment team. Fuentes worked at Cintra SA, a private developer of transport infrastructure, and Ferrovial SA (FER), which finances and maintains transport, urban and services infrastructure.
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