Emerging Market focused Infrastructure Fundraising

by Richard Stus

  • 15 Dec 2009
  • INF

There are currently 45 infrastructure funds focusing on emerging markets seeking an aggregate total of $25.6 billion. In terms of fund target size, the four largest emerging market focused infrastructure funds are co-managed vehicles involving the Macquarie Group. The four vehicles are seeking a total of $6.1 billion, which accounts for 24% of all the capital being sought for investment in emerging market infrastructure. The largest vehicle is the Macquarie State Bank of India Infrastructure Fund, a joint venture between Macquarie, State Bank of India and International Finance Corporation (IFC), which is targeting $2 billion for investment in Indian infrastructure and infrastructure-related assets.

Although the last 12 months have been tough for emerging market focused fundraising, there has still been activity within the sector. Only this week, the Challenger Mitsui Emerging Markets Infrastructure Fund announced its first close on $238 million. The equity was raised from nine investors including, Access Capital Advisers, Japan Bank for International Cooperation and Mizuho Corporate Bank. The fund is targeting a $650 million for investment in utilities, environmental services, transport and logistics-related infrastructure assets in the developing world.

For more information on infrastructure fundraising, please see Preqin's Infrastructure Online service.

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