Eight new infrastructure funds began fundraising in the first quarter of this year, compared to 18 during the same period last year, according to a market report by Swiss alternative investment consultancy SCM.
Benjamin Baumann and Ralph Aerni, authors of the report, said there were no significant closings in the first quarter of the year, blaming it on the “harsh“ fundraising enviornment.
As a result, funds were remaining in market for longer. “More interesting and meaningful is the fact that fundraising cycles are being expanded significantly and it still remains to be seen what will be the consequences for fund managers,“ Baumann told InfrastructureInvestor.
“The fundraising targets of the funds were continuously adjusted downwards and the fundraising period is being frequently extended,” Baumann and Aerni write in the report.
SCM is a Swiss management and consulting firm focused on alternative investments. It has an annual investment volume of $1 billion and more than $6.5 billion in managed assets, according to its website.