So far in 2014, 20 infrastructure funds managed by North America-based fund managers have reached a final close, having raised a total of $21bn from investors, 32% above the aggregate capital initially targeted by these funds. Of these 20 funds, 12 focus on investments in North America, three on European infrastructure investments, four invest globally and one within Asia.
In terms of strategy, 14 of the funds target primarily equity-based investments, two follow a fund of funds strategy and the remaining four target debt/mezzanine opportunities. The largest fund raised by a North America-based manager to close in 2014 YTD is Energy Capital Partners III, which launched in 2013 with a target size of $3.5bn. The fund closed on $5.1bn and primarily focuses on late stage development and operating assets.
In terms of funds in market, there are 45 funds being raised by North America-based infrastructure managers as of November 2014, seeking aggregate capital commitments of $31.6bn. Forty-two percent of these funds have successfully reached interim closes and begun investing capital. In terms of strategy, 34 of these funds currently on the road are targeting primarily equity opportunities, nine are seeking debt/mezzanine investment and two are pursuing a fund of funds vehicle strategy. The largest infrastructure fund currently in market managed by a North America-based manager is Morgan Stanley Infrastructure Partners II, targeting commitments of $4bn. Like the fund’s predecessor, it is a global fund mainly targeting Europe and North America, focusing on energy, transportation and natural resources investments.