According to Preqin’s Infrastructure Quarterly Index (PrEQIn), which captures the average returns earned by investors in their infrastructure portfolios, returns have increased each quarter since Q3 2009. Using the PrEQIn index is a useful way to gauge the performance of the industry, but also at fund level, where investors can evaluate their investment by looking at the net IRRs of funds within its peer group.
Preqin’s Infrastructure Online service holds net-to-LP performance data for 200 individual unlisted infrastructure funds. The table below reveals that seven of the top 10 best performing infrastructure funds* have a vintage year post 2008, illustrative of the recovery following the financial crisis.
Aravis Energy I has generated the highest IRR at 448% and remains the top performing infrastructure fund since Preqin conducted the same analysis in August 2015 for the Preqin Alternative Assets Performance Monitor. Unsurprisingly, the table consists predominantly of North America- and Europe-focused funds; however, it also features Ashmore Colombia Infrastructure Fund I, which has a net IRR of 30.0% and focuses on meeting the significant demand for infrastructure in Colombia.
*Excludes funds with vintage year post-2012.