In the Infrastructure Investor Global Investment Forum which took place last week in Hong Kong, there was a majority consensus by speakers and delegates that the infrastructure business is getting more global as compared to other asset classes. Investors and fund managers are seeking to diversify their investments’ geographical allocation. This week, Infrastructure investor’s Research and Analytics took home this trend and seek to understand it from the angle of unlisted fundraising using our own proprietary database.
The chart above shows the geographic breakdown of all unlisted funds raised from 2011 to 2013 January to October. In 2011, funds that have a global or multi-regional remit represents 32% of all capital raised in that year. Subsequently, more global funds were raised in 2012, representing 50% of all capital. The first 10 months of 2013 sees the continuation of this momentum, with global funds taking up 59% of the capital raised so far. From this perspective, it is in an agreeable fashion with the conference theme that the globalization of infrastructure investing is taking place and is the way forward for many. Indeed, we see various fundraising success stories in recent years from some global managers as below:
Brookfield Infrastructure Fund II – Brookfield asset management launched its fund II in early 2013 with a target size of $5 billion. In October 2013, the firm surpassed its target and closed at $7 billion, of which $2.8 billion is in-house capital.
Global Infrastructure Partners II – GIP initially had a $6 billion target size with a hard-cap of $ 7.5 billion. In July 2012, the firm raised the hard cap for its second fund from $7.5 billion to more than $8 billion after seeking approval from existing investors. In October 2012, GIP announced the final close on $8.25 billion.
EQT Infrastructure Fund II – In July 2012, the firm’s second unlisted infrastructure vehicle had reached its first close by raising €1. 1billion. A final close to €1.925 billion, above its €1.5 billion target, was reached in January 2013.