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Breakdown of US-Based Infrastructure Investors – August 2013

by Julia Goodall

  • 13 Aug 2013
  • INF

Institutional investors based in the US make up a significant proportion of the global infrastructure investor universe. Preqin data shows that 34% of all LPs investing in the infrastructure asset class are located in the US. Looking at a breakdown by US region, 51% of US-based infrastructure investors are located in the Eastern region of the US and 27% are based in the Central region of the US. An additional 18% of US-based infrastructure investors are Pacific-based, while only 4% are located in the Mountain region.

Investors in the Pacific region have the smallest average current allocation to infrastructure (1.7%); however, the average target allocation for these LPs is higher at 3.6%. This suggests that investors in this region are looking to become more active in the infrastructure asset class going forward. Investors in the Eastern region of the US have an average current allocation of 2.5%, and an average target allocation of 4.3%. Those in the Central and Mountain regions have more closely aligned average current and target allocations to infrastructure – 3.4%/4% and 2.7%/3.5% respectively. On average, investors in each US region remain under-allocated to the asset class, supporting the indication that US-based infrastructure investors are generally looking to increase their infrastructure exposure in future.

US-based infrastructure investors have aggregate assets under management (AUM) of just over $14tn, with a mean AUM per investor of $24.2bn. The mean current allocation to infrastructure of all US-based investors is 2.7%, while the mean target allocation is 5.4%, showing again that these investors still have considerable capital available for further investment in the asset class. Again comparing these figures to the infrastructure universe as a whole, the global mean current allocation to infrastructure is 4.7%, while the global mean target allocation is 7.6%.

A large proportion of US-based investors in infrastructure are pension funds: 21% are public pension funds and 19% are private sector pension funds. A further 16% are foundations, 15% are endowment plans, and 8% are insurance companies. This indicates that the majority of US-based infrastructure investors are made up of just a handful of institutional investor types – in particular, those which are commonly active in the asset class due to their long-term liabilities.

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