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Europe-Based Infrastructure Investor Preferences – January 2015

by Tom Begley

  • 27 Jan 2015
  • INF

Preqin’s Infrastructure Online service currently tracks 699 active Europe-based investors in infrastructure, representing 32% of all investors within the asset class. Thirty-three percent of Europe-based infrastructure investors are located within the UK, while Switzerland accounts for 12%, followed by Germany (10%), the Netherlands (9%) and France (5%).

The most prominent type of Europe-based investor in the infrastructure asset class is private sector pension funds, representing 24% all of Europe-based infrastructure investors, followed by public pension funds (16%), with insurance companies representing 10% and asset managers 9%. This is followed closely by banks and wealth managers, each representing 6% of the Europe-based infrastructure investor pool.

Europe-based investors have a preference for investing in unlisted funds, with 83% of investors utilizing this route to market. Fifteen percent of investors will invest via listed funds, while 32% will invest via direct investments. With regards to investment project stage preferences, 73% of Europe-based infrastructure investors will target greenfield opportunities, while 80% will target brownfield opportunities and 73% secondary stage opportunities.

In terms of investor geographic focus, 57% of Europe-based infrastructure investors prefer to invest domestically within Europe. Twenty-two percent primarily target North America, 10% Asia, 8% the Rest of the World and 3% South America.

All Pensions Group (APG) is currently the Europe-based investor with the largest allocation to infrastructure, with €7.5bn already invested in the asset class. The asset manager invests through unlisted fund commitments and direct investments, and gains exposure through a broad range of infrastructure industries and project stages. Legal and General Group currently has the largest allocation to infrastructure of all UK-based institutions at £3bn. The insurance company seeks investment opportunities through unlisted and listed funds as well as direct investments, and will continue to increase its exposure to the asset class over the coming 12 months, particularly in social assets such as education and healthcare facilities.

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