Chart of the Week: Funds Go Global

Capital committed to globally focused funds has increased steadily in the past five years.

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Capital committed to globally focused funds has increased steadily in the past five years, though there is not such a clear trend in the number of globally focused funds raised. The average number of global funds reaching final close in the period 2010 to 2013 is 13.

The average size of these funds has been steadily increasing year on year from $923 million in 2010 to $1.5 billion in 2013, with only a slight decrease in the current year to date to $1.2 billion. In contrast, the average size of a non-global fund has gently and sporadically decreased, resulting in an offsetting contribution to average fund size, for which there is no clear overall trend.

The capital committed to globally focused funds as a percentage of the total has a weak positive trend. This percentage was 22 percent in 2010 and 37 percent in 2013. So far in 2014, this figure is 51 percent.

There is a similar story in the number of globally focused funds raised as a percentage of the total: 15 percent of the total in 2010, 19 percent in 2013, and 30 percent in 2014 up to now.

These figures allude to a growing investor appetite for regionally diversified infrastructure investments. Indeed, there are 41 globally focused funds in market, six of which are in the top ten infrastructure funds by target size; the biggest fund by target size is Global Strategic Investment Alliance, managed by Borealis Infrastructure (target size $20 billion).