Chart of the Week: Mega funds in fundraising climate

Unlisted infrastructure fundraising in 2013 saw itself achieving a five year peak, raising $33.6 billion. This represents a 20 percent increase from the $28 billion raised in 2012. While general fundraising climate gets warmer, it is becoming apparent than before that this growing weight of investor capital is being placed with fewer funds, particularly mega sized funds.

 

 

In 2011, the top five largest infrastructure funds raised over 35 percent of the capital, while in year 2012 and 2013 both saw their top five largest infrastructure funds taking up just over 50 percent of the aggregate amount. The average fund size has also been growing; from $298 million in 2011, to $549 million in 2012, to the record size of 820 million per fund in 2013.

 

 

When examine funds in the market (FIM), it suggests that this trend of mega funds garners more capital each year is likely to continue into 2014, as the top 10 FIMs has a combine target representing 36 percent of all targeted capital.

 

 

For more information on fundraising and investors’ sentiment, please read up on our Infrastructure Investor fundraising review 2013.