Unlisted Infrastructure Fundraising

by Elliot Bradbrook

  • 31 Aug 2010
  • INF

In 2010 to date, 15 unlisted infrastructure funds have reached a final close raising an aggregate USD 18.7 billion.  This is more than double the USD 7.8 billion that was raised by 17 unlisted infrastructure funds closed in 2009.  This demonstrates that institutional investor confidence is beginning to return to the asset class following the financial crisis and investors are now more willing to commit capital to infrastructure funds.  A recent Preqin survey found that 70% of investors plan to make further infrastructure fund commitments in the coming 12 months, up from just 40% that stated the same in October 2009.

Fundraising for European and North American markets has also improved in 2010.  In 2009, 71% of funds closed were primarily focused on Asia and Rest of World opportunities as fund managers looked outside of the traditional markets in search of profitable assets.  However, in 2010, primarily Europe- and primarily North America-focused vehicles account for 12 of the 15 funds closed and 91% of the total capital raised.  This includes the closure of several sizeable funds such as Alinda Infrastructure Fund II and Energy Capital Partners II.

Primarily Asia and Rest of World-focused funds account for the largest share of the infrastructure fundraising market in terms of number.  There are currently 109 unlisted infrastructure funds on the road targeting USD 80.8 billion and 45% of these funds are primarily targeting Asia and Rest of World.  However, in terms of target capital, Europe- and North America-focused vehicles account for a larger proportion of the fundraising market, targeting aggregate capital commitments of USD 31.3 billion and USD 22.7 billion respectively.

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