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Q3 2010 Infrastructure Fundraising

by Elliot Bradbrook

  • 26 Oct 2010
  • INF

Infrastructure fundraising has improved significantly in 2010 with 20 funds reaching a final close raising an aggregate $24bn.  This is more than three times the $7.8bn raised by unlisted infrastructure funds in the whole of 2009.  The fundraising market remains challenging, but investors are clearly growing more confident in the wake of the financial crisis and fund managers are once again beginning to attract capital.

Five unlisted infrastructure funds closed in Q3 2010 raising $10.9bn.  This represents 45% of the total capital raised so far in 2010 and the highest quarterly total since Q4 2008 when 12 infrastructure funds closed raising $15.5bn.  This included the closure of several sizeable funds such as the $4.3bn Energy Capital Partners II and the $2.7bn Brookfield Americas Infrastructure Fund.  The table in Fig. 2 shows the five funds that achieved a final close in Q3 2010.

The average size of an infrastructure fund to close in 2010 to date is $1.2bn, significantly higher than the $460mn average in 2009 and larger than the $900mn average in 2008.  This can be attributed to a number of large funds closing this year including the $3.1bn GS Infrastructure Partners II and the $4.1bn Alinda Infrastructure Fund II.

Despite this apparent resurgence, infrastructure fundraising will remain tough with 109 funds currently in market seeking an aggregate $76.3bn.  This represents a significant 29% decrease from the $107.8bn targeted in Q3 2009 showing that fund managers are setting more realistic fundraising targets following the financial crisis.

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