The global unlisted infrastructure industry has seen a successful year in terms of fundraising, building on the growth seen throughout 2012, according to a research by Preqin.
With almost 55% of funds that closed in 2013 achieving or exceeding their initial target, and almost 50% of funds in market having already reached at least one interim close, there is significant momentum within the infrastructure fundraising market going into 2014.
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Other Key Fundraising Facts:
- Q4 2013 saw 14 infrastructure funds reach a final close, raising $19bn, significantly higher than the US$3.6 billion raised by 10 funds in Q3.
- Two funds account for 68% of capital raised in Q4: Brookfield Infrastructure Fund II raising US$7 billion and EIG Energy Fund XVI, raising US$6 billion, which are also the two largest funds to close in 2013 overall.
- The average size of unlisted infrastructure funds that closed in 2013 is US$872 million, significantly higher than the US$647 million average size in 2012 and the highest since 2007.
- However, the average time spent to reach a final close was 22 months for funds closed in 2013, only slightly lower than the average of 23 months for funds closed in 2012.
- 54% of funds closed in 2013 achieved or exceeded their target size, compared to 40% in 2012.
- Other notable funds to close in 2013 include Macquarie European Infrastructure Fund IV and EQT Infrastructure II, which raised 2.75bn and 1.925bn respectively in capital commitments.
- 521 deals were made by infrastructure fund managers in 2013, compared to 581 deals made in 2012.
Other Key Funds in Market Facts:
- As of 6th January 2014, there are 136 unlisted infrastructure funds in market, targeting US$86 billion in capital commitments.
- 67 of these have held interim closes and have secured US$16 billion towards their fundraising targets.
- The largest fund in market is Energy Capital Partners III, which is targeting US$3.5 billion for investments in North America.
- 52% of funds in market have already spent more than 18 months on the road.
Elliot Bradbrook, manager, Infrastructure Data, Preqin, said: "Following a strong final quarter, 2013 saw more capital raised by unlisted infrastructure funds than in any year since 2008. There were some notable fundraising successes during the year and more than half of the firms that closed funds in 2013 did so on or above their initial fundraising target. With many institutional investors growing their infrastructure allocations, unlisted infrastructure fundraising looks set to remain strong in 2014. There is significant institutional appetite for infrastructure, with investors seeing the potential for long-term, stable returns. Infrastructure fundraising looks set to remain strong in 2014, with many institutions carving out new allocations to infrastructure, and a significant number of existing investors looking to increase their exposure."
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