Fundraising

Head of real assets Subahoo Chordia says low returns from traditional asset classes have put investors ‘on the journey to looking at alternatives’.

The French fund manager is eyeing final close in H2 and has already deployed capital in three major assets.

LP interest in the asset class continues to be high and there are tentative signs that the pace of fundraising is improving.

The asset manager’s second transition fund, which on Monday reached a $10bn first close, has a ‘robust pipeline’ and could invest in sub-sectors BGTF I hasn’t, Jehangir Vevaina tells us.

Nearly half the funds committed to what is the firm's largest vehicle to date is from new LPs and roughly 20% has already been deployed.

KKR’s Asia Pacific Infrastructure Investors II is the largest regional fund raised to date, overtaking Macquarie Asia-Pacific Infrastructure Fund III, which itself took the crown from KKR’s first APAC vehicle.

Only $112bn was raised by closed-end structures last year compared with a high of $172bn in 2022.

Adam Lygoe, head of Institutional and International Wealth Distribution, sees more LP ‘allocations continuing to come online in the infra space’.

With just over $82bn of unlisted, closed-end funds closed to date, you have to go back to 2015 for such a low tally.

The new Growth Markets Fund II is targeting renewables investments in high-growth middle-income markets, with PensionDanmark its first LP.