Blog

Europe-Based Infrastructure Investors – October 2014

by Rebecca Gibney

  • 15 Oct 2014
  • INF

Preqin’s Infrastructure Online service currently tracks 675 Europe-based investors in the infrastructure assets class, representing 32% of all investors active in infrastructure. Of this investor pool, the UK constitutes the largest proportion (32%), followed by Switzerland (12%), Germany (11%) and the Netherlands (9%). These 675 investors collectively manage $20tn in total assets and have an average current allocation of 4.6% to the infrastructure asset class.

 

The most prominent type of Europe-based investor in the infrastructure asset class is private sector pension funds (24%), followed by public pension funds (16%), with insurance companies constituting 10% and asset managers 8%. This is followed closely by banks and wealth managers, each representing 6% of the European infrastructure investor pool.

In terms of regional preference for investments, 72% of Europe-based infrastructure investors favour investments within the region, particularly in West Europe or domestic markets. Additionally, 27% of Europe-based investors will seek opportunities within North America, and 46% are open to investments on a global basis, demonstrating openness to geographic diversification which is prevalent among many investors in the asset class.

Within the infrastructure asset class, the main route to market for Europe-based investors is through unlisted fund commitments (82%). This compares to 29% that will consider direct investment opportunities and 14% of investors that seek to invest in listed funds. In addition, Europe-based investors are generally open to investing across all project stages, with brownfield projects (81%) the most favoured, followed by secondary stage assets (75%) and greenfield projects (74%).

Currently, the top Europe-based investor in infrastructure by allocation is the Dutch asset manager, All Pensions Group (APG), with €7.5bn already invested in the asset class. The asset manager invests directly and through commitments to unlisted funds, and is exposed to a diverse range of industries and project stages. The top UK-based investor in infrastructure is Legal and General Group which have a current allocation of £3bn to infrastructure. The insurance company seeks investment opportunities through unlisted funds and direct investments as well as listed funds, 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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