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Infrastructure Funds on the Road

by Elliot Bradbrook

  • 31 May 2011
  • INF

According to Preqin data, there are currently 127 unlisted infrastructure funds on the road targeting an aggregate $89.3bn.  In June 2010, there were 103 funds in market, seeking $82.6bn, indicating that a growing number of infrastructure fund managers are launching unlisted infrastructure funds but are generally lowering their fundraising expectations following the global financial crisis.  The average infrastructure fund on the road is targeting $703mn, significantly less than the $802mn average target in June 2010.  The largest unlisted infrastructure fund currently in market is Global Infrastructure Partners II, which is looking to raise $5-6bn.  Preqin is also tracking a further 45 infrastructure funds that may begin fundraising in H2 2011.

More funds on the road are primarily focused on Europe than on either North America or Asia and Rest of World.  52 of the 127 funds currently raising capital are focused primarily on opportunities in Europe targeting an aggregate $37.6bn.  30 funds are focused on infrastructure assets in North America targeting an aggregate $29bn, while 45 funds are primarily focused on opportunities outside of developed markets seeking a further $22.7bn.

The majority of funds in market target a diverse range of project stages within their portfolios. 67% will invest in greenfield assets, 71% will invest in brownfield assets and 50% will target secondary stage projects.  A growing number of fund managers are beginning to focus on more mature infrastructure assets to avoid the construction risk associated with greenfield projects.

 

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