A recent survey of 63 institutional investors revealed 73% of infrastructure investors feel their fund managers’ interests are poorly aligned with their own, and about 25% feel there should be greater interaction between both parties when making investment decisions.
The survey, conducted in June 2010 by Preqin, further revealed 72% of respondents found management fees and fund carry structure are areas of concern as the industry continues to recover from the economic downturn.
Additional findings include:
• 70% plan to invest in infrastructure in the next 12 months, a 40% increase from October 2009
• 22% believe the greatest infrastructure opportunities are in North America, while 20% have their sites set on Western Europe, and 19% look to emerging markets
• 52% believe the private equity fund model will be used in the infrastructure sector, but it needs to be adapted to fit the long-term nature of infrastructure investments
