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Investment Consultant Opinions on the Infrastructure Asset Class

by Dami Sogunro

  • 03 Nov 2011
  • INF

With unlisted infrastructure funds seeking capital at an increasing rate, Preqin analysts asked investment consultants about their current infrastructure fund preferences, in an attempt to identify key strategies and geographies in the coming year.

Geographically, Asia was cited by half of infrastructure investment consultants as presenting attractive investment opportunities over the next 12 months, and Europe was a close second, with 47% of consultants citing the region. Emerging markets are of growing importance to the infrastructure sector; in addition to Asia, a significant proportion of investment consultants involved in the infrastructure space viewed South America as an attractive region in which to invest in the near future.

Preqin also asked alternatives investment consultants how much their clients were looking to commit to unlisted infrastructure funds compared to last year and what the key issues are that could potentially discourage them from investing. The results appear encouraging for infrastructure fund managers, with none of the investment consultants interviewed by Preqin planning to commit less to infrastructure over the next 12 months compared to results of last year. In fact, the majority of respondents (58%) said that they were planning to increase their levels of commitment to the asset class.

More than one-fifth of respondents plan to significantly increase commitments to the asset class, and a further 36% will increase commitments to a certain degree. Additionally, 3% of consultants revealed that their clients had not invested in infrastructure in the last year, but were planning to do so this year. Thirty-nine percent plan to maintain their rate of commitment to the asset class.

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