The global unlisted infrastructure industry has seen a successful 2013 in terms of fundraising, increasing 31% compared to the year-ago period.
A report from Preqin finds there was US$38 billion ($40.8 billion) raised by 47 infrastructure funds holding a final close in 2013, the largest amount of capital raised in any year since 2008 when 59 funds raised US$41 billion ($44 billion).
Almost 55% of funds that closed in 2013 achieved or exceeded their initial target, and nearly 50% of funds in the market have already reached at least one interim close.
Other key fundraising facts include the following:
- The average size of unlisted infrastructure funds that closed in 2013 is US$872 million ($936 million), significantly higher than the $647 million ($694.6 million) average size in 2012 and the highest since 2007.
- 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 with 40% in 2012.
- 521 deals were made by infrastructure fund managers in 2013, compared with 581 deals made in 2012.
“There is significant institutional appetite for infrastructure, with investors seeing the potential for long-term, stable returns,” says Elliot Bradbrook, Preqin’s manager of infrastructure data. “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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