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North America-based Infrastructure Firms

by Paul Bishop

  • 28 Feb 2012
  • INF

Preqin is currently tracking 81 North America-based infrastructure fund managers that are either currently raising an infrastructure fund or have previously done so.  A total of 126 unlisted infrastructure funds have been raised by North America-based fund managers to date, raising $92.3bn in aggregate capital.  There are 36 funds currently on the road managed by North American firms, seeking $27.6bn in total capital commitments.  In terms of geographic preference, the majority of North America-based fund managers (71%) seek to invest within North American infrastructure markets.

In terms of state/province, the most prominent base for North American infrastructure fund managers is New York, with 26% of firms based in the state.  Other significant bases include Ontario (Canada) and Texas both with 12% of managers headquartered there, Washington DC (8%) and California (7%).  A significant 77% of the 81 North American fund managers are first-time fund raisers, with just 14% handling two funds, and 21% managing three or more vehicles.  Evidently, the majority of North American infrastructure fund managers do not have a proven track record in the space highlighting the emerging nature of the asset class, particularly in the US.

The bulk of North American Infrastructure fund managers will seek to invest across a variety of project stages in order to ensure portfolio diversification.  However, brownfield assets are the most popular with 87% of North American fund managers investing in such projects.  Seventy-seven percent of North American firms will invest in greenfield opportunities, while 64% consider mature secondary stage assets.  In terms of infrastructure sector, the energy and energy-related industries dominate the marketplace, with 67% of North American firms investing across the energy sector, while 62% target renewable energy assets and 29% seek exposure to natural resources opportunities.  This illustrates the more developed nature of the energy industry in North America as opposed to traditional infrastructure sectors.

The most significant North America-based infrastructure fund manager currently raising capital is Global Infrastructure Partners.  The New York City-based firm is raising its second fund targeting between $5bn and $6bn in investor capital, having already secured over $3bn.  Other prominent firms in the market include Highstar Capital and Alinda Capital Partners, targeting $3.5bn and $3bn respectively.

 

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