In April 2012, we examined the top 100 institutional investors in infrastructure. We now return to analyze the largest 100 institutional investors in infrastructure by committed capital to see how these most active market participants have evolved over the course of 12 months.
The top 100 institutional investors in infrastructure have an aggregate $213bn committed to the asset class to date through a combination of unlisted funds, listed funds and direct investments, representing a 4% increase on the aggregate commitments of the top 100 investors in 2012. Investors from 24 countries feature in the top 100 list, a slight decrease on the 27 countries which constituted the top 100 in 2012. This year’s list consists of 15 different institutional types, which allocate capital to the infrastructure asset class from a variety of sources, including private equity allocations, real asset allocations and separate infrastructure allocations. The average allocation to infrastructure by the top 100 LPs is $2.1bn, substantially lower than their average target allocation of $3bn, showing that many of these investors still have large amounts of capital available for new infrastructure investments.
The most prominent countries in the 2013 top 100 list include Australia, with 15% of the total, the US, the UK and Canada with 14% each. When compared to 2012, the top 100 are spread more evenly across these core countries with no clear country emerging as the most active in 2013. In terms of regions, Europe is the most prominent, with 41% of the top 100 investors based there, a 2% increase on 2012. North America accounts for 28%, Australasia 16%, Asia 11%, and the remaining 4% are located outside of these areas. Public pension funds are the most active type of investor on the 2013 list, making up 20% of the total, followed by asset managers with 17%. Insurance companies represent 15% of the total and private pension funds and superannuation schemes make up 10% each. The overall makeup of investor types within the top 100 list has not changed significantly, suggesting that the asset class’s appeal continues to attract long-term, liability matching investors.
In terms of assets under management (AUM), 23% of investors featured in the top 100 list have total assets of over $10bn. Eighteen percent have an AUM of $50-100bn, 38% have total assets of $10-50bn, and 20% have less than $10bn. The mean AUM of the top 100 investors in infrastructure is $101bn, higher than the $92.4bn average in 2012. Seventy percent of the top 100 infrastructure investors invest through a separate allocation to infrastructure, an indication that these investors regard infrastructure as an important part of their portfolio. The remaining investors allocate capital through a private equity allocation (8%), a real assets allocation (5%), a general alternatives allocation (6%), or from a different source (11%).