GIP and debt funds bolster infra fundraising

Global Infrastructure Partners made a big contribution as infrastructure fundraising picked up in the second quarter of 2012 after a subdued first three months. Debt funds also made their mark, with four such vehicles accumulating significant capital.

Global infrastructure fundraising in 2012 had reached $9.9 billion by the end of the second quarter, bringing it back into line with the level of fundraising seen in 2010 and 2011, according to figures compiled by placement agent Probitas Partners. This followed a disappointing first quarter when just $2.9 billion was raised.

If the current rate of fundraising continues, it’s fair to assume the eventual yearly total will be around the $20 billion mark. This would be similar to the $20.8 billion raised last year and $19.0 billion total recorded in 2010. At the height of the pre-crisis infrastructure fundraising boom in 2007, $39.7 billion was raised; while a post-crisis slump in 2009 saw just $10.7 billion gathered.

The second quarter total of $7.0 billion was given a big helping hand by New York-headquartered Global Infrastructure Partners, which collected around $2.5 billion from investors during the quarter – meaning it single-handedly almost matched the global total raised in the first quarter. By the end of July, the firm’s second fund had reached $7.5 billion as it headed towards a hard cap of more than $8 billion.

Debt funds also made an impression, having not contributed anything to the total in the first quarter. Four such vehicles – being raised by Energy Capital PartnersAMP Capital, Aviva Investors/Hadrian’s Wall and Stonebridge Financial Corporation – raised $884 million between them in the second quarter.

In terms of strategy, 40 percent of capital raised so far this year is targeting brownfield opportunities; 26 percent a mixture of brownfield and greenfield; 11 percent opportunistic; 10 percent greenfield; 9 percent debt; and 4 percent renewable energy.

When it comes to geography, 46 percent of the capital is focused on global opportunities; 21 percent Europe; 13 percent North America; 12 percent Latin America; and 8 percent Asia.

The first half of 2012 saw 10 final closes of infrastucture funds, compared with 19 in the whole of 2011 and 24 in the whole of 2010.