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Nordic-Based Investors in Infrastructure – January 2014

by Courtney Higgins

  • 08 Jan 2014
  • INF

Preqin’s Infrastructure Online currently tracks 93 active Nordic-based investors in the infrastructure asset class. This includes investors located in Denmark, Finland, Iceland, Norway, and Sweden. These Nordic-based investors have an average current allocation to infrastructure amounting to 3.4% of total assets and an average target allocation of 4.8%. These investors have aggregate assets under management (AUM) of approximately $9.6tn.

Nordic-based investors comprise 4.7% of all investors in the infrastructure universe. Sweden is home to the largest proportion (29%) of investors based in the Nordic region. Denmark is home to 23% of Nordic-based investors, and 22% are based in Finland and Norway, respectively. A further 5% of Nordic-based investors are located in Iceland. Of these 93 Nordic-based investors, public pension funds are the most active type, representing 26% of all Nordic-based investors. Other notable investor types in the region include insurance companies and private sector pension funds, representing 25% and 20% of Nordic-based investors respectively.

In terms of how these investors source capital for infrastructure investments, 24% maintain a separate allocation for infrastructure, 23% source their infrastructure investments through a private equity allocation, and 18% of source their infrastructure investments though a general alternatives allocation.

Unlisted fund commitments for Nordic-based infrastructure investors remain the most common route to market, with 86% targeting unlisted funds. Additionally, 33% of investors will consider making direct infrastructure investments and only 12% are open to listed infrastructure commitments. Over 98% of Nordic-based investors primarily utilize a primary equity investment strategy. Other infrastructure strategies that are employed by these investors are debt/mezzanine (16%), fund of funds (6%), and secondaries (3%).

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