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Infrastructure Debt Fund Managers

by Iain Jones

  • 25 Oct 2011
  • INF

Preqin currently holds information on 26 infrastructure fund managers managing a total of 38 unlisted infrastructure debt funds. This includes 21 funds that have already held a final close, raising an aggregate $8.2bn, and a further 17 funds currently seeking USD 9.1 billion in investor capital.  Notable infrastructure fund managers to close a debt fund include Abraaj Capital, which raised the $2bn Abraaj Infrastructure and Growth Capital Fund in 2007, and Westbourne Capital, which raised the A$1bn Westbourne Yield Fund in 2010. Of the debt funds currently raising capital, five have held a first close and three have held either a second or third close.

In terms of the geographic focus of infrastructure debt funds, the vast majority (71%) primarily seek opportunities in Asia and Rest of World, with a further 26% and 3% targeting Europe and North America respectively. In addition to these preferences, 85% of debt funds target the greenfield project stage, 77% seek brownfield projects and 54% focus on secondary stage investments. Infrastructure debt funds are therefore often geared towards financing at the higher end of the debt risk/return spectrum; a consequence of the under-development of these debt markets in comparison with the developed European and North American economies.

Key Infrastructure fund managers currently raising debt funds include Aviva Investors, which is seeking £1bn in commitments for Aviva Investors Hadrian Capital Fund I, Hastings Funds Management and Sequoia Investment Management Company, both raising debt vehicles targeting €1bn.

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