Infrastructure Fundraising Update – November 2012

by John Mather

  • 01 Nov 2012
  • INF

The slowdown in unlisted infrastructure fundraising in the midst of the economic downturn will not come as surprising news to any industry observer. Preqin’s Infrastructure Online, which tracks funds closed within the unlisted infrastructure market, documents this trend. Between 2008 and 2009 infrastructure fundraising declined 77%, from 53 vehicles reaching a final close in 2008 to just 25 in 2009. 2010 saw a resurgence, with 46 funds closing on an aggregate $32.1bn in commitments, but 2011 saw a 30% decline in aggregate fundraising, with 40 funds closing on an aggregate $22.4bn.

In 2012 so far, 27 infrastructure funds have reached a final close, having raised $19.8bn from investors. Despite this gradual fall in annual fundraising, a recent survey of infrastructure investors conducted by Preqin highlights the growing prominence of the asset class. Preqin Quarterly: Infrastructure, Q3 2012  conducted a study in August 2012 showing that 78% of respondents are planning to make commitments to the infrastructure asset class in the next 12 months, while 9% did not expect to increase their exposure, and 13% remained undecided on future commitments.

Preqin Investor Network data tracks funds in market globally and can be used to identify relevant investment opportunities. For investors seeking opportunities within the unlisted infrastructure market, Preqin Investor Network currently tracks 153 vehicles seeking an aggregate of over $91bn. Of the 153 vehicles on the road, 41% have a main focus on European investments, 21% focus on investments targeting the US, and the remaining 38% seek exposure to investments in Rest of World. The largest infrastructure fund currently on the road is Alinda Capital Partners Global Core Infrastructure Fund, which is seeking $3bn to invest in energy, transport and utility industries. It recently held a first close of $340mn.

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