Chart of the Week: North American LPs Segmentation

Pension Funds is the second largest investor group in North America and remains its strong presence in the fund market.

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Infrastructure Investor’s Research & Analytics team monitors infrastructure fund LPs’ investments around the world. We have profiled over 660 institutional investors in North American region in the asset class as to date. The biggest investor group is Foundation/ Endowment which makes up 41% of the total number. It is followed by Pension Fund, Asset Manager and Corporate Pension Fund, accounting for 24%, 6% and 5% respectively. 

Although Foundation/ Endowment constitutes the largest number of investors in the asset class, it may not appear to be as active as Pension Fund.  Foundation/ Endowment manages $1,690 million of assets on average, while Pension Fund has $33,041 million on average. The latter one has responded to strong appetite by committing to unlisted funds. For example, in August, the California Public Employees’ Retirement System (CalPERS) announced that they have invested $300 million into Morgan Stanley’s second infrastructure fund and $250 million into UBS International Infrastructure Fund II, about two weeks after announcing a $500 million strategic partnership with UBS Global Asset Management. Other examples in August include the Oregon Public Employees Retirement Fund (OPERF), which made a $200 million commitment to Global Infrastructure Partners’ (GIP) debut infrastructure debt fund, and the New Mexico Educational Retirement Board (NMERB), which approved a $50 million commitment to I Squared Capital’s debut infra fund. These activities indicate that North American pension funds continue to play an important role in the infrastructure market.