According to Infrastructure Investor’s Research & Analytics, 9 unlisted infrastructure funds held final closes in Q1 2014, raising $7.3 billion in aggregate capital. When we take a closer look at the numbers and compare it to the previous data from 2010, it is notable that the average size of unlisted infrastructure funds has been increasing since 2011.
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The average size of an unlisted infrastructure fund that reached a final close in 2013 was $752 million, 81% higher than the $415 million average in 2011. While the trend continues in Q1 2014 with the $811 million average, the bifurcation of the fundraising becomes more pronounced – almost 95% of total capital raised in the quarter was collected from the top 5.
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The 2 largest funds closed in Q1 2014 were LS Power Equity Partners III, which held final close on its hard cap of $2.08 billion and KKR Energy Income & Growth Fund, which collected $0.5 billion more than its original target of $1.5 billion. The total capital raised by these 2 funds already accounted for over 55% of total capital raised in this quarter.Â
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