As we enter 2013, it is possible to review 2012 infrastructure deal flow and compare it to previous years. In 2012, 208 infrastructure deals were made by unlisted infrastructure fund managers worldwide, a 30% decline on the 296 transactions completed in 2011. However, 2012 deal volume will increase as further deals are disclosed by infrastructure GPs over the coming months.
The average infrastructure deal size in 2012 amounted to $470mn, a slight 2% increase on the $460mn average deal size in 2011. This is an indication that the average value of deals completed by infrastructure fund managers has begun to improve in recent years, particularly when compared to the drop in deal value experienced in 2009 when the average infrastructure deal value dropped to $310mn. Seventy-three percent of all infrastructure deals completed in 2012 were valued below $500mn, and 14% had a transaction value of between $500mn and $999mn. Just 13% of all deals made during the year had a deal size higher than $1bn. This is a slight change from 2011, when only 21% of deals were above $500mn in value compared to 27% in 2012.
Europe continues to be the prominent market in terms of deal flow, with 48% of deals in 2012 involving European assets. North American deals accounted for 23% of the total in 2012, and Asian deal flow made up 8%. Deals that were made outside of these regions accounted for 20% of total 2012 deal flow. In terms of industry sector, renewable energy was the most active sector for deals in 2012, with 32% of all transactions made within these assets. Social infrastructure assets also played a key role in the make-up of 2012 deals, with 21% made in this sector. Transportation assets, energy assets, and the utilities sector were also prominent sectors in 2012 accounting for 18%, 13%, and 10% of total deals made respectively.