Pacific Equity Partners is likely to target an AUD 2bn (USD 1.3bn) raise for its third infrastructure fund, two sources familiar said.

There is no timing yet for a launch of its latest Secure Assets Fund (SAF). One source said it is slated for January, while the other said that will be too early.

Before PEP can launch the third SAF fund, the AUD 1.4bn Secure Assets Fund II needs to do one more deal, the second source said.

It also has to complete its latest investment, the agreed acquisition last month of 75% of NZX-listed telco Spark New Zealand’s data centre platform for NZD 486m (USD 288.6m).

PEP, Australia’s largest PE fund, launched SAF I, its first and only infra fund, in 2018 when it raised AUD 650m. In 2023, it raised AUD 1.4bn for SAF II, meeting its hard cap, according to Infralogic data.

To date, the SAF vehicles are closed ended funds with about a 12-year hold period, targeting gross returns of around 15% and they can only invest in Australia and New Zealand. Equity commitments for each deal are under AUD 500m with target sectors including transportation, logistics, telecommunications, health, power and utilities.

Completed investments so far include stakes in smart meter business Intellihub, since partially sold to Brookfield; remote area power company, Zenith Energy – now being sold to KKR; landfill gas power company LMS Energy; and land lease business Serenitas.

PEP declined to comment.