Preqin’s Infrastructure Online service currently tracks 430 Asia-Pacific-based institutional investors that are active in the asset class, with an additional 38 investors considering infrastructure investments in the near future. The top 25 Asia-Pacific-based firms, in terms of allocation to infrastructure, together have $2.2tn in assets under management (AUM), accounting for 8% of the collective AUM held by all active investors located in Asia-Pacific. These 25 institutions have $89bn invested in infrastructure, representing 82% of the total capital allocated to the asset class by investors based in Asia-Pacific.
As the chart above shows, Australia-based investors form the largest proportion of the top 25 Asia-Pacific-based infrastructure investors with 13 institutions, followed by South Korea with four. A prominent Asia-Pacific-based investor in infrastructure is AustralianSuper, having 10% of its total assets allocated to the asset class, as well as AUD 4bn earmarked for new infrastructure investments over the next two years. The superannuation scheme made its first significant direct investment in NSW Ports as part of a consortium led by IFM Investors in Q2 2013. The investor also has exposure to a wide range of infrastructure assets including toll roads, airports, energy and renewable energy.
Due to the large asset base and infrastructure investment experience of the top 25 investors, direct investments are the most preferred route to market (96%), although a similar proportion (92%) have exposure through unlisted funds. Additionally, a noteworthy 72% of the top 25 are interested in PPP/PFI investments.
The majority of the top 25 Asia-Pacific-based investors are seeking new investments in infrastructure over the next year, indicating the strong appeal of the asset class within this region. One such investor is China-based investment company Ping An Trust, which will commit approximately CNY 10bn to direct economic infrastructure projects in China in the next 12 months.