Preqin’s Performance Analyst online service contains individual net-to-LP performance data for 181 named infrastructure funds. Using this data, the chart below examines the median called-up to committed capital, distributions to paid-in capital (DPI) and residual value to paid-in capital ratios for unlisted infrastructure funds as of 30 September 2014.
For all of the vintage years examined, the majority of capital is still held in infrastructure assets, reflecting the long-term nature of the investments made by infrastructure funds. The median 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 53%.
The median called-up to committed capital percentage for 2012, 2013 and 2014 vintage funds are 42%, 25% and 14% respectively, indicating that many funds of these vintages have a high proportion of their capital still to call up. It is expected that the performance of these funds will change considerably as more capital is called and subsequently invested.
While infrastructure is a relatively new asset class in institutional investor portfolios, Preqin data demonstrates that unlisted infrastructure funds have largely delivered the stable returns that are one of its main attractions, with all but 2013 and 2014 vintage funds achieving median net multiples greater than 1.00x.