Preqin is currently tracking 627 active Europe-based investors in the infrastructure asset class, representing 36% of the infrastructure investor universe. Europe-based investors have mean assets under management of €34.5bn and an average current allocation to infrastructure of 4.49%. The average target allocation to the asset class for these investors is 6.37%, indicating a general under-allocation to the asset class within Europe, with capital available to invest in the future.
Within Europe, the most active region in terms of infrastructure investors is Western Europe, with 83% of Europe-based investors in this area. Nordic-based investors are also prominent, accounting for 15%, whereas Central and Eastern Europe-based investors represent just 2% of the total Europe investor base. Looking at a breakdown by country, the UK is the most prominent region for active investors, with 198 based in the country, representing 32% of all Europe-based investors. Following behind is Switzerland (11%) and Germany (9%), meaning that just 3 countries account for over 50% of total Europe-based investors.
The majority of Europe-based infrastructure investors invest through commitments to unlisted funds, with 83% investing in such vehicles. Only 12% of investors commit capital to listed infrastructure vehicles, making the listed route to market the least utilised. Investors’ open to or actively making direct investments account for 29% of the European investor base.
Looking at the types of investors active in the infrastructure asset class, public and private pension funds represent 36% of Europe-based investors. This is likely as a result of the potential for regular, stable, and inflation-linked returns which are a good match for their long-term liabilities. Insurance companies are also prominent in the asset class, accounting for 11% of total investors. Nine percent of Europe-based investors are asset managers and 7% are banks.