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First-Time Infrastructure Fund Managers

by Paul Bishop

  • 28 Mar 2012
  • INF

Preqin currently tracks 172 first-time infrastructure fund managers, defined as those fund managers to have only raised one infrastructure fund to date, or those that are currently raising their first vehicle. Ninety-one first-time funds have already reached a final close having raised an aggregate $51.4bn in commitments, while 81 first-time funds are currently on the road seeking $37.5bn in commitments. First-time funds therefore make up a significant 54% of the number of unlisted infrastructure funds currently on the fundraising trail, of which 48% are using the services of a placement agent.

In terms of geographic focus, 44% of all first-time funds focus on markets in Asia and Rest of World. North America represents the second most preferred market for first-time funds, with 35% of such funds targeting North American assets, while Europe has the smallest proportion with 21%. This is indicative of the greater level of GP experience in Europe than in other regions, with many European firms managing more than one infrastructure vehicle. Emerging markets are in increasing need of infrastructure development, which illustrates why a number of new firms are coming to market in order to raise capital for emerging market infrastructure.

The majority of first-time infrastructure fund managers are based in Western countries, with the US and the UK the most popular locations. These two countries are home to a combined 57% of all first-time infrastructure GPs (32% and 25% respectively). Other significant locations for first-time infrastructure fund managers include India, Brazil, Singapore, China, Hong Kong, the UAE, and Australia.

Morgan Stanley Infrastructure Partners is the largest fund closed by a first-time infrastructure fund manager to date, having raised $4bn. Citi Infrastructure Partners is the second most significant first-time infrastructure fund manager, having closed its debut fund in 2008 on $3.4bn. Other significant first-time GPs include Arcus Infrastructure Partners, Transurban Group and Semperian.

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