US-Focused Infrastructure Fundraising - September 2012

by John Mather

  • 12 Sep 2012
  • INF

Thirty-three unlisted infrastructure vehicles directly targeting assets (rather than other funds) with a main focus on the US are currently in the market. Data from Preqin Investor Network, which tracks these 33 funds, shows that they have an aggregate target size of over $27bn and an average size of $821mn. Twenty-two of these vehicles are managed by firms located in the US and six are managed by firms based in Canada. The remaining five funds are managed by firms located in various Western European countries and there are also two funds being managed by an Australia-based firm.

Of these 33 funds, 30 are primary funds targeting equity positions and three have debt/mezzanine strategies. Energy is the most popular industry type targeted by US-focused vehicles, with 73% of funds currently raising capital planning to gain some exposure to the traditional energy industry and 70% to renewable energy investments. Water and utilities investments are the next most popular sectors, with 52% and 48% of US-focused funds looking to invest in them respectively. Forty-five percent and 42% of US-focused vehicles seek investment opportunities in transportation and natural resources industries respectively.

In terms of targeted capital, two of the largest US-focused unlisted infrastructure vehicles in market include Global Infrastructure Partners II, which recently held a third close on $7.5bn and Alinda Global Core Infrastructure Fund, which is targeting $3bn from investors.

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