Infrastructure: Laying Foundations Further Afield

by Richard Stus

  • 03 Nov 2009
  • INF

The infrastructure asset class has always held global appeal, and the regional split of the current fundraising market confirms this. There are currently 39 infrastructure funds being raised by European-based managers and they are targeting $31.9 billion, which equates to 29% of the total capital being sought globally. In comparison, 18 months ago, 31 European funds were seeking an aggregate $32.3 billion. This shows that there has since been an increase in the number of European fund managers coming to market, but a decrease in their average targets.

Asia and Rest of World managers are raising more funds than their European counterparts, but the 40 funds in market in this region are targeting a smaller aggregate of $30.9 billion. This statistic reflects the growing demand for infrastructure development in emerging markets.

North American firms are raising only 29 funds, but these vehicles are seeking significantly more than their counterparts, with an aggregate target of $45.3 billion. The North American firms include established private equity fund managers such as Blackstone Group and Kohlberg Kravis Roberts (KKR) and Kohlberg Kravis Roberts (KKR), which have both launched their first infrastructure-specific vehicles. KKR is in market with KKR Infrastructure Fund, but it has just been announced that the fundraising target has been reduced for a second time. In April 2008, the fund set out to collect $10 billion but by Q1 2009, it reduced its target to $4 billion, it is now believed that the vehicle is targeting in the region of $2.5 billion due to the tough fundraising conditions seen in the unlisted infrastructure fund market.

For more information on infrastructure funds and fundraising, please click here to learn more about our Infrastructure Online service and the 2009 Preqin Infrastructure Review.

Continue browsing industry reports, publications, conferences, blogs and more on Preqin Insights