The second edition of the Infrastructure Investor 30 (II30), a global ranking of the largest infrastructure direct-investment programmes released today by Infrastructure Investor magazine, shows that infrastructure as an asset class is growing and changing to incorporate a larger pool of diverse investors from around the globe.
Together, the 30 largest infrastructure investment programmes in the world formed $183.1 billion in investment capital over the past five years – a more than 30 percent increase from the $140.5 billion totalled by last year’s debut II30.
The full listing is available here.
Independent infrastructure fund managers have raised $54.9 billion in the past five years for infrastructure, overtaking bank-affiliated infrastructure funds, which have raised $54.3 billion over the same time period.
This changing-of-the-guard can be attributed to a number of factors. Recent years have seen a proliferation of independent fund managers, thanks in part to spin-outs from investment banks and financial sponsors, as well as the increasing interest in the asset class from the investor community more broadly. Many fund managers have also enjoyed success raising steadily larger successor funds, which help drive their numbers higher.
However, the top two spots on the II30 are still held by bank-affiliated infrastructure fund managers.
Macquarie Group, the Sydney-based investment bank best known for its infrastructure investment activities topped the ranking for a second year in a row with $31.83 billion in direct investment capital formed for infrastructure. And Goldman Sachs, the New-York based investment bank, also retained its position as second on the table, having raised $10.72 billion for the asset class.
Increased pension fund interest in infrastructure has propelled the Canada Pension Plan Investment Board to number 3 this year – up from number 11 last year – on the back of the capital formed for a number of large, high-profile deals the pension closed in 2010.
Pension schemes were fast climbers in this year’s ranking, with Dutch pension asset manager APG Asset Management rising to number 5 – up from last year’s 15. QIC, Queensland’s public pension manager, leaped 13 spots to number 9 this year, thanks, in part, to the Australian province’s ongoing asset sales, which have given QIC plenty of capital for buying opportunities.
All together, pensions accounted for about $50 billion of the total infrastructure direct-investment capital created by the II30.
Infrastructure developers, which often take minority equity stakes in the projects they develop, all but disappeared from the ranking this year. The exception was Spanish infrastructure group Ferrovial, the owner of UK airports operator BAA, which actually climbed to number 4, up from number 16 last year.
The II30 was created using a proprietary methodology that takes into account the total direct-investment equity created by an investor for infrastructure in the last five years. The methodology was created to measure the size of the three major investor types in the asset class, fund managers, pension plans and infrastructure developers, in an apples-to-apples manner.
To read more about the ranking’s methodology, click here.