Preqin Quarterly Update: Infrastructure, Q3 2016
Infrastructure fundraising in Q3 was particularly strong, reaching $23bn – a level last seen in Q4 2013. Demand for the asset class continues to be strong as a result of the risk-adjusted returns it can provide, as well as offering less volatility. However, the number and estimated aggregate deal value of infrastructure transactions fell for a second consecutive quarter, the lowest since Q3 2012. Institutional investors in the asset class maintain a strong preference for domestic investment opportunities, although with Brexit uncertainty, Europe may be viewed with caution: 18% of North America-based investors are targeting Europe, compared with 30% in Q2.