In recent years the infrastructure sector has experienced dramatic growth and has evolved from a niche sector into what many now classify as a separate asset class. However, the global financial crisis threatens to stunt this growth, with fundraising down significantly in 2009. In light of the most recent fundraising statistics, Preqin recently performed a survey to gauge infrastructure investor sentiment and activity in the asset class. The survey’s findings include:
• Only 19% of respondents having committed to the asset class this year. A much larger percentage, however, felt confident that they would be investing in the asset class in the future.
• 40% of investors plan to make infrastructure investments over the next 12 months, with nearly half planning to make multiple commitments. A further 31% of investors are undecided as to whether they will make infrastructure commitments in the next year, with many monitoring the asset class and waiting for the markets to strengthen.
• 63% of investors are maintaining their allocations to infrastructure and a further 13% are increasing their allocations. A number of investors also suggested that they will look to make direct investments in the future.
The full research report with the detailed findings of the survey can be found here.