UK-Based Unlisted Infrastructure Fund Managers – November 2013

by Julia Goodall

  • 12 Nov 2013
  • INF

Preqin is currently tracking 52 UK-based unlisted infrastructure fund managers, which make up a significant 36% of the total European infrastructure fund managers active in the space, and 15% of all infrastructure fund managers globally. Seventy-seven unlisted infrastructure funds in total have been closed by UK-based fund managers, raising an aggregate $54.7bn. There are currently 32 unlisted infrastructure funds on the road managed by UK-based GPs, seeking to raise a further $24.1bn.

Fifty-eight percent of UK-based infrastructure GPs are first time fund managers, while 25% have raised two funds, and 17% have raised three or more funds. This indicates that a substantial proportion of UK-based GPs in the unlisted infrastructure space are first time managers without a proven fundraising track record. This mirrors the wider market, with only few firms able to illustrate strong past performance. Macquarie Infrastructure and Real Assets (MIRA) is by far the most experienced UK-based fund manager (although it has offices based all over the world), having raised $27.5mn over the last 10 years, and managing 16 infrastructure funds in total. Other prominent UK-based GPs include EQT Funds Management, which has raised $4.2bn across two funds, and Innisfree, which has raised seven funds in total, securing $3.7bn in total capital commitments over the last ten years.

Unsurprisingly, Europe is the most commonly targeted region by funds managed by UK-based infrastructure GPs, with 76% of funds citing the region as their primary geographic focus. Eight percent focus investments primarily in Asia, 5% in North America, and 11% target investments outside of these regions. This suggests that although the UK boasts some of the largest and most active infrastructure fund managers in the market, relatively few look to invest outside of Europe, and West Europe in particular.

Notable unlisted infrastructure funds currently on the road being managed by UK-based GPs include Macquarie Infrastructure Partners III, Terra Firma Infrastructure Fund for Global Renewable Energy and UBS International Infrastructure Fund II. All three funds are seeking to raise $2bn in total capital commitments. Macquarie Infrastructure Partners III held a first close in September 2013 on $1.3bn.

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