SIMCo, PIMCO Launch Multi-Billion-Dollar Infrastructure Credit Partnership

Sequoia Investment Management Company (SIMCo) and PIMCO have formed a strategic partnership to originate senior investment-grade infrastructure debt, seeking to capitalize on growing financing needs tied to energy transition, digitalization and modernization across developed economies.

The partnership is expected to support a multi-year, multi-billion-dollar investment program focused on essential infrastructure assets and projects across sectors including energy transition, digital infrastructure, transportation, utilities and social infrastructure.

SIMCo, a specialist infrastructure debt investment manager and origination platform, will combine its sourcing and structuring capabilities with PIMCO’s global investment platform to provide long-term financing solutions to infrastructure borrowers.

The firms said the partnership is intended to help bridge a widening funding gap across OECD countries, where demand for infrastructure investment increasingly exceeds the availability of traditional long-term capital.

“Infrastructure credit continues to offer compelling relative value and defensive characteristics within private markets,” said Harin de Silva, managing director and co-head of asset-based finance at PIMCO.

Randall Sandstrom, CEO of SIMCo, said the alliance significantly expands the firm’s ability to originate and execute transactions at scale.

“We believe the combination of SIMCo’s origination and structuring capabilities with PIMCO’s global investment platform creates a compelling franchise focused on senior investment grade infrastructure lending,” Sandstrom said.

The announcement follows another recent expansion of SIMCo’s infrastructure finance activities. Earlier this month, the firm partnered with Investec to co-underwrite and co-arrange energy and infrastructure transactions across the United Kingdom and Europe.