Continental Europe-Based Infrastructure Investors – September 2012

by Emma Davis

  • 11 Sep 2012
  • INF

Preqin currently tracks 437 institutional investors based in continental Europe. Continental Europe is a prominent area of private infrastructure investment activity, with many large and experienced investors located in the region. Continental Europe-based infrastructure investors have mean assets under management totalling $37.1bn and an average current allocation to infrastructure of 3.4%.  With an average target infrastructure allocation amounting to 4.7% of total assets, the average infrastructure investor located in continental Europe is under-allocated to the asset class and has available capital to invest in future.

In terms of specific geographical location, Western Europe remains the pivotal location for a significant number of investors actively committing capital to infrastructure, with 73% of continental Europe-based investors located in western European countries. Nordic countries are home to 22% of all continental Europe-based infrastructure investors, while eastern and central Europe account for 4% and 1% of the universe respectively.

Similar to the global institutional investor community, the majority of continental Europe-based investors invest in the infrastructure asset class through commitments to unlisted vehicles. Eighty-one percent of continental European investors invest in unlisted funds, while just 7% invest in listed infrastructure vehicles.  Investor interest in direct investment in infrastructure assets is growing, with 31% of continental Europe-based investors active in this area, although unlisted vehicles will remain the primary route to market for most investors going forward.

In terms of investment strategy, 92% of continental Europe-based investors adopt a primary equity strategy when investing in infrastructure. Debt/mezzanine strategies are considered by 13% of the continental Europe-based investor community, while 9% will invest in fund of funds structures.  Just 2% of continental Europe-based infrastructure investors look to acquire fund interests on the secondary market.

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