(Reuters) - Global Infrastructure Partners (GIP) is in discussions to raise $25 billion for a new flagship fund, Bloomberg News reported on Tuesday, citing people familiar with the matter.
The firm is separately targeting $5 billion for a core fund to invest in lower-return, income-producing assets that may include toll roads and bridges, the report said, adding that its size could increase amid strong demand.
The total fund-raise would be the world's biggest pool of capital dedicated to infrastructure investments.
Investors have rushed to cash in on the infrastructure boom as real estate firms have benefited from record-low interest rates since the peak of the COVID-19 pandemic. The uptick in demand with economic recovery gaining steam is boosting profits.
Discussions regarding the Global Infrastructure Partners V fund are in the early stages and the infrastructure fund manager hasn't made final decisions on its size, as per the report.
GIP did not immediately respond to Reuters' request for a comment.
Founded in 2006 and led by Adebayo Ogunlesi, GIP manages roughly $77 billion in assets. It raised $22 billion for its last flagship fund, Global Infrastructure Partners IV, in 2019.