Unlisted infrastructure fundraising is on the verge of a record-breaking year: $69bn was raised in Q1-Q3, approaching the annual record of $73bn raised in 2017. Four consecutive years of record fundraising has resulted in an unprecedented influx of capital into the industry, and requires fund managers to deploy it at a faster rate than ever before.
Deal activity has been rising year on year as a result, with a record 3,098 deals completed in 2017. To support this deal making, fund managers called up an unprecedented $84bn from investors, even as they returned a record amount of capital to them. Despite this, the dry powder available for fund managers to deploy has hit a new high of $173bn as of September 2018.
The influx of capital to the industry – as well as its deployment – have raised concerns among fund managers and investors about deal pricing. With asset valuations rising, some have asked if previous strong performance can be sustained. Despite this, investors remain committed to the asset class: 43% reported in June 2018 that they would invest more in infrastructure in the year ahead than they had in the previous 12 months, suggesting that fundraising may continue at record levels into 2019.
Follow this link to see more data from the Infrastructure Industry Climbs a Wall of Capital factsheet.