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North America-Based Infrastructure Investors - October 2012

by Paul Bishop

  • 03 Oct 2012
  • INF

Preqin currently tracks 593 active investors in the infrastructure asset class based in North America, representing the second most prominent base for active infrastructure investors in the world behind Europe. North America-based investors have mean assets under management of $29.8bn and an average target allocation to infrastructure of 7.8%. As a whole, the North American infrastructure universe has a mean current allocation to infrastructure of 3.3%, suggesting that many institutions have available capital ready to invest in further infrastructure opportunities.

In terms of investment preference, North America-based investors hold a distinctive preference for unlisted infrastructure funds. Ninety-three percent of all North America-based investors access the asset class via this route, while 16% make direct investments in infrastructure assets and just 5% invest in listed funds. The vast majority of investors based in North America will only seek to invest in infrastructure via a single route-to-market, with 84% of investors preferring to invest via a single mechanism. However, 13% of investors will invest via multiple mechanisms in order to provide a more diversified exposure to the asset class.

When analyzing the North American investor universe by preferred strategy, a significant 94% of North America-based investors have a preference for primary infrastructure vehicles. However, other strategies are growing in prominence, particularly in the infrastructure debt space. Eleven percent of North America-based investors invest in infrastructure debt either through commitments to debt funds or through project financing strategies, while 8% invest in fund of funds vehicles and a further 3% have an interest in infrastructure secondaries funds. Again, most North America-based investors tend to pursue a single investment strategy, although 16% will pursue multiple strategies in order to create a diversified investment portfolio.

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