Infrastructure funds of funds continue to be a niche investment strategy within the wider unlisted infrastructure fund market. However, as the primary infrastructure fund market has matured, an increasing number of infrastructure fund of funds vehicles have been launched.
Preqin Investor Network currently tracks 155 unlisted infrastructure funds on the road, including 10 funds of funds which are targeting an aggregate $2.5bn in capital commitments. Although the majority of these infrastructure funds of funds in market target a range of geographic regions, seven of the ten funds currently in market have a primary focus on Europe, and are looking to raise $1.9bn in aggregate capital commitments. The remaining three vehicles have a main investment focus on North America, and are seeking to raise an aggregate $650mn.
The largest infrastructure fund of funds in market is Pantheon Global Infrastructure Fund II, which is seeking €350mn in capital commitments. The vehicle is expected to invest in a range of economic infrastructure assets across the project stage spectrum in Europe. DB Global Infrastructure Fund is another prominent fund of funds vehicle with a target size of €250mn. The fund has a global investment focus and will invest the majority of its capital in OECD countries and the remainder in emerging markets.