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After a blow-out first half, the expectation is that infrastructure fundraising will slow down in H2. That prediction seems quite sensible given the difficult macroeconomic environment prevailing in virtually all parts of the world. But, if a slowdown is indeed coming, it certainly didn’t arrive in Q3, which brought this year’s nine-month fundraising total to $131.6 billion, making it the strongest Q1-Q3 to date.
The latest data underscores the continuation of trends we’ve been witnessing for a while now, which include consolidation and an increase in the average fund size. Renewables continue to dominate sector-specific funds, accounting for nearly 70 percent of the $27.1 billion raised. Energy-focused vehicles were a distant second having raised $4.9 billion, followed by telecoms-dedicated vehicles raising just $3 billion.
It will be interesting to see whether Q4 brings in at least another $18.3 billion – the amount needed for 2022 to match last year’s total – or whether it will exceed that amount, allowing 2022 to set a new record.
At the moment, we know that roughly $7 billion has been raised since the end of July, with Hy24 closing its hydrogen fund on €2 billion; Ardian closing its second Americas fund on $2.1 billion; and Copenhagen Infrastructure Partners closing its inaugural energy transition fund on €3 billion.
Considering that Brookfield announced in August that it was nearing a first close of $20 billion for its fifth flagship fund – just $5 billion short of its final target – 2022 could very well end on a new high, at least as far as infrastructure fundraising is concerned.