Infrastructure fundraising has clearly taken a hit following the onset of the credit crunch. At the mid-year point in 2009, only $3.5 billion had been raised by three funds achieving a final close. The drop in fundraising clearly has little to do with the number of funds on the road, as the number of vehicles currently seeking capital is at record levels, with 96 funds seeking an aggregate $103.5 billion. This reversal of fortunes raises questions as to whether this drop represents a temporary blip or a more fundamental change in investor appetite.
All the evidence shows that investors are keen to access infrastructure investments, both with existing investors showing a desire to make further investments in the future, and with new institutions establishing infrastructure allocations on a regular basis. However, it is difficult to predict how soon it will be before investor intentions result in action, and the flow of fund commitments improve.
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