The global financial crisis has had a serious impact on infrastructure fundraising in 2009. Just six infrastructure funds have reached a final close in 2009 year-to-date, including five primary funds and one fund of funds vehicle. In the same period in 2008, 25 infrastructure funds had reached a final close and an additional 12 funds achieved a final close by the end of the year. This year market conditions have forced fund managers to postpone final close dates and prolong the fundraising period as they compete for limited investor commitments.
Fund managers are also considering holding interim closes in order to begin investing capital sooner. 21 infrastructure vehicles have held an interim close in 2009 year-to-date compared with 26 in 2008. Therefore, despite poor fundraising conditions, the number of interim closes achieved in 2009 shows good momentum in the market and we would expect the number of final closes to increase in 2010, although, fundraising will continue to be tough.
To find out more about infrastructure fundraising please click here to learn more about Infrastructure Online and the new 2009 Preqin Infrastructure Review, which both contain useful information on infrastructure fundraising.