Infrastructure Investors on the Hunt; A Regional Take – April 2013

by Stephen Yates

  • 16 Apr 2013
  • INF

Preqin currently tracks a total of 1,750 investors within the infrastructure space who have a preference for or have previously committed to the infrastructure asset class. Of these firms, 662 have been identified as actively considering making new investments in the current market. Of these 662 investors, 56% are actively seeking new opportunities over the coming 12 months, while the remaining 44% have an opportunistic investment strategy.

In terms of region, Europe remains the most active market for investors. Of the 270 European based LPs tracked by Preqin, 24% are actively searching for new investments in the next 12 months, while a further 19% are considering investment on an opportunistic basis. North America investor appetite also remains strong, with 19% of total North American-based investors looking to actively commit capital to infrastructure in the next 12 months, while 15% continue to monitor the asset class on an opportunistic basis. A significant 23% of Asia-based investors featured within Preqin’s Infrastructure Online are searching for new opportunities in the next 12 months, with a further 21% remaining opportunistic to the infrastructure asset class. This combined 44% is the highest proportion of any other region, although the universe in terms of number is significantly smaller. Seventeen percent of Rest of World investors expect to make new investments in 2013, and a further 12% are considering further capital commitments opportunistically.

From a fund manager perspective, fund managers of vehicles that are globally focused are likely to attract the most significant levels of investor capital in the coming 12 months. Forty percent of infrastructure investors that maintain a global investment focus are currently open to further commitments, of which 22% will be actively investing and have specific plans to invest further capital in the coming year. Outside of this, Europe-focused and North America-focused funds also look set to be in relatively high demand with 28% and 25% of investors targeting these regions planning to increase their infrastructure exposure in the coming 12 months. Asia-focused funds will be sought by 20% of the Asia-focused investor universe, while 27% of investors that consider exposure in emerging markets are looking for new investments within the infrastructure space.

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