Chart of the Week: Global funds still favourite

Infrastructure Investor’s Research & Analytics team analyses the geographical focus of infrastructure funds that have closed from Q1-Q3 in 2013. 26 funds have closed in the first three quarters, raising $19.7 billion.



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38% of the total comes from nine global funds indicating that many LPs prefer exposure to a geographically diverse set of infrastructure assets, rather than to assets in single regions. The largest of the global funds to close was the $2.59 billion EQT Infrastructure Fund II. The Swedish fund surpassed its target of $2.02 billion with commitments from investors such as the State Pension Fund of Finland (VER) and NTUC Income Insurance Co-operative.

When investors did choose a fund focused on a particular region, they preferred Western Europe. Five funds targeting the region closed in 2013, raising $3.5 billion. More than half of this total came from Axa Infrastructure fund III, which closed in the first quarter of the year. The fund raised $1.95 billion but fell short of its $2.02 billion target.

Since the end of 2011, no funds that solely target Central and Eastern Europe or Middle East and Africa have managed to close. Nine of the ten funds targeting these regions that have closed since 2008 did not meet their targets. So, it’s clear that fundraising for such emerging infrastructure markets remains tough.