Click the top right of the presentation to full view full screen
Beginning with Russia’s invasion of Ukraine and its effect on energy markets, capital markets, inflation and interest rates, the various events of 2022 are, to some extent, reflected in our latest investor report and foreshadow what’s to come in 2023.
Take, for instance, the sum of the 20 largest known commitments to 2022-vintage funds: they totalled $4.8 billion – $300 million less than the previous year and reversing the upward trend witnessed since we published our first Investor Report in 2020. The single-largest commitment was also smaller than that made in 2021 – $400 million versus $500 million.
And if we want a glimpse of what lies ahead in 2023, a slowdown in fundraising looks increasingly likely, with 22 percent of 107 investors surveyed for Infrastructure Investor’s LP Perspectives Study 2023 saying they would invest less capital in infrastructure in the months ahead, compared with just 5 percent who intended to do so when asked in 2021.
It’s possible the reason for that is the denominator effect that has impacted many investors’ portfolios, where LPs suddenly find themselves overweight in private markets. In the case of infrastructure, nearly half of the 122 LPs Infrastructure Investor surveyed, say they are overallocated to the asset class at the end of 2022 compared with just 3 percent who were above target at the end of 2021.
Despite these shifts, there were elements that remained constant, including multi-regional funds attracting the most capital – $2.5 billion, with Brookfield Infrastructure Fund V accounting for $1.6 billion of that total. DIF Capital Partners was also the recipient of some of the largest commitments, collecting $357 million for DIF Core-plus Infrastructure Fund III and another $200 million for DIF Infrastructure VII.
Another constant is digital infrastructure’s popularity followed by that of renewables’, both of which are set to outperform other infrastructure subsectors when it comes to attracting capital.
Check out our interactive report above for the full breakdown of investor activity in 2022 and further insights the data reveals.
You can also download the report as a PDF HERE and download the data HERE.
If you do not receive this within five minutes, please try to sign in again. If the problem persists, please email: