The tough fundraising conditions in 2009 resulted in 15 unlisted infrastructure funds closing during the year raising just $7bn in total capital commitments. This was significantly lower than the $34.5bn and $41.7bn raised in 2008 and 2007 respectively. However, as predicted, the infrastructure fundraising market appears to have bottomed out and is now slowly on the rise with several funds reaching a final close so far in 2010.
Six unlisted infrastructure funds closed in Q1 2010 raising an aggregate $6.2bn, including the $4.1bn Alinda Infrastructure Fund II in January. This is a marked improvement from Q4 2009 and almost matches the total capital raised by infrastructure funds in the whole of last year. Therefore, despite ongoing investor caution, infrastructure fundraising looks set to exceed 2009 levels in the first half of 2010.
It is worth noting that without the closing of Alinda Infrastructure Fund II, the five remaining funds closed in Q1 2010 raised an aggregate $2.1bn. Although considerably less than the total raised, this figure remains higher than the fundraising levels achieved in each of the three quarters since Q1 2009, showing good momentum within the market when compared to last year.
This blog is an excerpt from this month’s Infrastructure Spotlight feature article. To view the whole article, please sign up to Infrastructure Spotlight
For more information on infrastructure funds and fundraising, please see Infrastructure Online to learn more about our Infrastructure Online service.