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Median Called-Up, Distributions and Residual Value Ratios of Infrastructure Funds by Vintage Year

by Lisa Parker

  • 05 Jan 2016
  • INF

Preqin’s Infrastructure Online service features performance data for over 200 unlisted infrastructure funds. Using this data, it is possible to examine the median called-up to committed capital, distributions to paid-in capital and residual value to paid-in capital ratios for unlisted infrastructure funds.

For all of the vintage years examined, the majority of capital is still held in infrastructure assets, reflecting the long term nature of infrastructure investments. The median distribution to paid-in capital (DPI) by vintage year is less than 100% across all vintages, demonstrating that investors have to wait several years before seeing their invested capital again. Unsurprisingly, vintage 2006 funds – the most mature funds considered – have distributed the largest proportion of capital to investors, with a median DPI of 51.3%. The median called-up to committed capital for 2013, 2014, and 2015 vintage funds are 40.0%, 22.2% and 7.2% respectively, as many funds of recent vintages have yet to call up the majority of their capital. The performance of these funds will change considerably as more capital is called and subsequently invested.

While infrastructure has only become an established asset class relatively recently, Preqin’s performance data demonstrates that unlisted infrastructure funds have largely delivered the stable returns that are one of its main attractions for investors, with all except post-2013 vintages achieving median net multiples greater than 1.00x.

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