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.
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.
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.