H.I.G. Said to Canvass Investors on $2.6 Billion Infra Fund

H.I.G. Capital is looking to raise about $2.6 billion for its second infrastructure fund, according to people familiar with the matter.

The Miami-based firm has started sounding out existing investors for the vehicle, called H.I.G. Infrastructure Partners II, the people said, asking not to be identified discussing confidential information.

The strategy’s fundraising target would make the latest vehicle around double the size of its first fund, which closed with capital commitments of about $1.3 billion in 2024. A representative for H.I.G Capital declined to comment.

Infrastructure has grown increasingly popular with investors because these assets are considered to be more immune from inflationary pressures. Adding to that is the potential for an AI supercycle, creating sky-rocketing demand for power generation.

The new fund will seek to control equity stakes in infrastructure companies, focused on the middle market primarily in North America and Europe, the people said.

The firm is seeking investments in the transportation, energy, digital, environmental, water and waste sectors. It will target a gross internal rate of return of 15% to 20%, the people said, putting it in line with typical private equity funds.

The strategy’s first fund has made 11 investments to date. Last year it sold Madrid-headquartered sustainable mobility solutions provider EYSA Group to Tikehau Investment Management.