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Infrastructure Funds in Market Being Raised by First-Time Fund Managers - September 2012

by Bogusia Glowacz

  • 05 Sep 2012
  • INF

Preqin Investor Network currently tracks 156 infrastructure vehicles on the road looking to deploy capital across the globe, with more than half of them being raised by first-time managers. First-time funds are presently targeting an aggregate $42.2bn, which represents 44% of the total capital sought by all infrastructure vehicles ($96.3bn). Forty-eight percent of first-time funds have already held their first close, which is a slightly higher proportion than the 36% of all infrastructure vehicles that reached their first close. Furthermore, 21% of infrastructure funds raised by first-time managers are using placement agents compared to 18% of all infrastructure funds.

In terms of geographic focus, 41% of infrastructure vehicles managed by first-time fund managers focus on markets in Europe. Asia and Rest of World represents the second most preferred market for first-time funds, with 39% of such funds targeting that region; a further 20% of funds focus on North America. Infrastructure development is in increasing demand in Asia and Rest of World, and has resulted in a number of first-time fund managers coming to market in order to raise capital for infrastructure funds focusing on emerging markets.

One of the largest infrastructure funds managed by a first-time fund manager is Harbourmaster Infrastructure Debt Fund, which focuses on investment opportunities in Europe. The Ireland-based Harbourmaster Capital Management is currently targeting €2bn for its maiden vehicle and is yet to hold its first close. In terms of first-time infrastructure funds focused on Asia and Rest of World, Urban Infrastructure Construction Industrial Investment Fund is presently seeking CNY 10bn and has already reached its first close at CNY 2.5bn. The Beijing-headquartered All-China Federation Industrial Funds Management is looking to invest in urban infrastructure and infrastructure-related firms within China, particularly those in the oil & gas industry.

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