Despite the considerable drop in the number of deals completed by infrastructure fund managers in 2009, compared to previous years, core sectors continue to dominate infrastructure fund portfolios. Core industries such as energy, telecommunications, transport and utilities have traditionally been a mainstay for infrastructure funds and, as such, many fund managers have acquired valuable experience in this area, which enables them to execute deals efficiently and effectively.
Core infrastructure accounts for 84% of the 107 investments made by infrastructure funds in 2009 to date. Similarly, in 2007 and 2008, core infrastructure industries accounted for 76% and 88% of infrastructure deals, respectively. It is therefore unlikely that we will see a shift away from core infrastructure in the near future.
Although core infrastructure accounts for a significant majority of investments in 2009, deals are also being struck in other economic sectors, as well as in social infrastructure industries. The majority of these transactions stem from infrastructure funds investing as part of a generalist investment strategy, but there is also activity from specialist funds, such as Equitix Fund I, a vehicle targeting social PPP/PFI opportunities in the UK, which invested in Derbyshire BSF, a UK school PPP project.
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