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Q1 2013 Infrastructure Fundraising Review – April 2013

by Paul Bishop

  • 02 Apr 2013
  • INF

In Q1 2013, seven unlisted infrastructure funds reached a final close having raised an aggregate $6.7bn in investor capital. This is the same number of funds which reached a final close in Q1 2012, but is a significant increase on the $2.7bn in total capital raised. Of the seven unlisted infrastructure funds reaching a final close in Q1 2013, four focus on European infrastructure investments, one on North America, and two on Rest of World regions. The largest fund to close in Q1 2013 was EQT Infrastructure II which raised €1.9bn in investor commitments and targets infrastructure assets globally across both economic and social sectors. Eleven funds held interim closes during the quarter raising $2.6bn in investor capital; seven of these were first closes accounting for 46% of total capital raised through interim closes.

In terms of funds in market, as of April 2013 there are 145 infrastructure funds on the road seeking aggregate capital commitments of $88bn. Over half (54%) of these funds have successfully reached an interim close and begun putting capital to work, suggesting that the fundraising market remains buoyant. The majority (39%) of funds on the road are targeting European infrastructure, with North America-focused funds accounting for 22% of infrastructure funds in market. Fifteen percent seek to invest in Asian infrastructure assets while 23% are targeting Rest of World. Europe also remains the centre of the infrastructure universe in terms of capital sought, with European funds representing $34bn of the total investor commitments being targeted.

Given the high number of funds on the road targeting Europe and the significant level of capital being targeted for investment in the region, it looks likely that Europe will remain the primary focus for the infrastructure sector in 2013. This is unsurprising given the positive attitude among fund managers towards European deal flow, with 50% of fund managers surveyed in a March 2013 study believing that Europe would be the most attractive region for deals in 2013.

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