H1 2014 Fundraising Review

Infrastructure Investor H1 2014 Fundraising Review

H1 2014

 
2014 began with great optimism for good unlisted infrastructure fundraising performance after a strong 2013. However, global fundraising shows something approaching a drought at the half-way point of 2014. 20 unlisted infrastructure funds have held final close so far into 2014, raising $13.6 billion in aggregate. This figure represents a 45 percent fall in comparison to the same period in 2013.

Looking at the forward calendar of likely fund closings, there is a lack of blockbuster funds that we have seen in recent years such as Global Infrastructure Partners ($8.25 billion) or Brookfield ($7 billion). Figures for funds in market with interim close are also unimpressive; only 12 funds have held interim close so far this year with a combined size of $5.4 billion. The difficulties in fundraising, plus the intense competition (201 funds are on the road seeking capital) has forced some managers (such as CVC) to wind down their infrastructure efforts.

However, the drought in unlisted infrastructure fundraising does not mean that institutional investors are cutting back on infrastructure allocations. Our conversation with LPs globally still indicates positive sentiment to the asset class. Rather, they are now pickier than ever in their selection of managers. Many are also seeking ways to invest directly, either through a consortia, co-investing with fund managers, or both. The industry news section explains that many sovereign wealth funds and pensions are still active investors. We also feature some investors looking to allocate to infrastructure later in this edition.

Lastly, we included an interview with Alain Carrier, Managing Director, Global Head of Infrastructure, Canada Pension Plan Investment Board as one of the largest LPs in the world gives us its insights into the industry.

 

H1 2014 Fundraising Review 

 

Q1 2014 Fundraising Review

2013 Fundraising Review

Q3 2013 Fundraising Review