The Infrastructure Investor Universe

by Elliot Bradbrook

  • 07 Jun 2011
  • INF

Preqin is currently tracking over 1,150 active institutional infrastructure investors.  19% are public pension funds, making them the most prominent type of investor active in the infrastructure space.  There is also a significant number of private pension plans investors, accounting for 17% of the total.  Superannuation schemes represent a further 6%, meaning the various types of pension plans account for 42% of all investors in the asset class. Pension funds are well-suited to infrastructure investment because relatively stable, predictable income streams are a good match for the long-term liabilities that a pension fund must satisfy.

Insurance companies and banks both represent the third largest proportion of infrastructure investors, with each type accounting for 8% of the global total.  Asset managers account for a further 7% of total investors, while endowment plans and fund of fund managers represent 5% and 4% respectively.

20% of investors in infrastructure have less than $1bn in total assets under management, and 62% have assets under management of less than $10bn.  In 2010, 59% of investors had less than $10bn in total assets under management, while in 2008 and 2009, investors with total assets of less than $10bn represented 47% and 55% of infrastructure investors respectively.  This shows that small and medium-sized investors make up a growing proportion of the infrastructure investor universe. 

In terms of target allocation to infrastructure, 8% of investors dedicate less than 1% of total assets under management to infrastructure investments, while 44% have a 1-4.9% target and 27% target between 5% and 9.9%.  23% of all active investors target 10% or more to infrastructure opportunities.  These investors tend to be infrastructure-specific fund of funds managers, private equity fund of funds managers with an allocation to infrastructure, development companies with a focus on infrastructure and infrastructure-specific investment companies.

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