Nordic-Based Infrastructure Investors – May 2013

by Stephen Yates

  • 07 May 2013
  • INF

Preqin’s Infrastructure Online is currently tracking 96 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 3.3% of total assets, and an average target allocation of 3.9%.

Of these 96 Nordic-based investors, pension funds are the most active type, with 46% of investors being either public or private sector pension funds. Public pension funds are the most active single type of investor in the Nordic region, with 26% of all Nordic-based investors falling into this category. Other notable types of Nordic-based investor include insurance companies and asset managers, representing 24% and 7% respectively. Sweden is home to 27% of Nordic-based infrastructure investors, higher than any other country. Finland is home to 24% of Nordic-based investors, while 23% are based in Denmark, 22% in Norway and 4% are located in Iceland.

In terms of preferred route to market, a significant 93% of Nordic-based investors access the infrastructure asset class through unlisted fund commitments, making it the most common route to market within the region. Investors based in the Nordic region which consider direct investment opportunities account for 34% of the overall total. Listed fund commitments are the least preferred route to market with only 13% of Nordic investors open to these opportunities. Almost all (99%) of Nordic-based investors in infrastructure utilize a primary equity investment strategy. Nine percent of investors will make debt/mezzanine investments, while 4% consider fund of funds investments. Investors that consider acquiring existing fund interests on the secondary market account for 2% of the total.

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