Preqin is currently tracking 115 foundations and family offices actively investing in the infrastructure asset class. These institutional investors have mean and median assets under management of $2.8bn and $814mn respectively, and range in size from a few million dollars to almost $40bn.
The majority of foundations and family offices investing in infrastructure are based in the US, representing 42% of the global total. Western Europe is the other dominant location for these institutions, with Italy (16%), Switzerland (9%), UK (7%) and Germany (6%) making up a combined 38% of total investors. These investors seek opportunities in a range of geographic regions: 59% hold a preference for European infrastructure, 46% target North American exposure and 24% look for investments in Asia and Rest of World.
When investing in infrastructure, foundations and family offices generally opt for unlisted funds, with 89% indicating this as their preferred route to market. 16% of these institutions will make direct investments in infrastructure and infrastructure-related assets and 6% will make commitments to listed vehicles. As a group, foundations and family offices hold little preference in terms of project stage exposure, with 61% considering developmental greenfield assets, 66% investing in brownfield projects, and 64% targeting more established secondary stage opportunities.
A number of significant infrastructure fund managers have successfully raised capital from foundations and family offices including the likes of ArcLight Capital Partners, LS Power Group, PineBridge Investments – Infrastructure (formerly AIG), F2i SGR and Highstar Capital.