Preqin Research Report Fig.

2: Split of Fundraising Market by Interim Closes Held to Date

closing this year, including the $3.1bn GS Infrastructure
Infrastructure Fundraising: November Partners II and the $4.1bn Alinda Infrastructure Fund II.
2010 (1) 70
Despite this apparent resurgence, infrastructure 60
60
fundraising will remain tough in a crowded market, with
Infrastructure fundraising has improved significantly in 109 funds currently on the road seeking an aggregate 50
42.4
39
2010, with 20 funds reaching a final close so far this $76.3bn. This represents a significant 29% decrease from 40
year raising an aggregate $24bn. This is more than three the $107.8bn targeted in Q3 2009, showing that fund 29.4 No. Funds Raising
30
times the $7.8bn raised by unlisted infrastructure funds managers are setting more realistic fundraising targets Aggregate Target
20
in the whole of 2009. The fundraising market remains following the financial crisis. ($bn)
10 7
challenging, but investors are clearly growing more 3.3 3 1.2
confident in the wake of the financial crisis, and fund Interim Closes 0
No First Second Third
managers are once again beginning to attract capital. In addition to managers achieving a final close, there Known Close Close Close or
are a significant number of firms holding interim closes, Close More Source: Preqin
As shown in Fig. 1, five unlisted infrastructure funds showing good movement in the market.
closed in Q3 2010 raising $10.9bn. This represents 45%
of the total capital raised so far in 2010 and the highest As shown in Fig. 2, nearly half of the 109 funds in market
quarterly total since Q4 2008, when 12 infrastructure have held at least one interim close (49 funds seeking
funds closed raising $15.5bn. The Q3 2010 figure $33.9bn in investor capital), showing that fund managers
includes the closure of several sizeable funds such as are succeeding in raising capital as the market continues
the $4.3bn Energy Capital Partners II and the $2.7bn to recover. This looks set to continue, with many fund
Brookfield Americas Infrastructure Fund. managers planning interim and final closes before the end Infrastructure Online is the most comprehensive resource
of the year. available to infrastructure professionals today. It is a vital
The average size of an infrastructure fund to close in 2010 source of information whether you’re a GP, LP, fund of
to date is $1.2bn, significantly higher than the $460mn Investor Attitudes funds, placement agent, lawyer, consultant or advisor.
average in 2009 and also larger than the $900mn average Investor sentiment towards the infrastructure asset Information is available across the following main areas:
in 2008. This can be attributed to a number of large funds class is undoubtedly improving, as suggested by the
more encouraging fundraising environment. The global > Investors
financial crisis certainly influenced investor appetite for > Fund Terms
infrastructure funds in 2009, but investor confidence is > Fundraising
Fig. 1: Quarterly Fundraising by Unlisted Infrasturcture Funds, Q1
returning. This reflects the findings of a Preqin survey > Performance
Preqin Hedge provides the most comprehensive institutional
2007 - Q3 2010 investor
conducted in June this year, which revealed that many > Fundinformation
Managersto hedge fund industry professionals available
today. Whether you are a fund manager, third-party marketer, prime
> Deals
broker, consultant or advisor, Preqin Hedge is a vital information
25 service for you. Our unique products include information on:
19.7 For more information and to arrange a demo please visit:
20
15 15 15.5 > Institutional Investors Available as:
15 12.5 12 > Funds of Hedge Funds
11 10.9 OUT NOW www.preqin.com/infrastructure
10 9.7 > Advisors > Hard Copy Publications
10 7 8 7 87.3 > Online Database Services
6 5 6 6 5.9 5
5 2.6 3 3.6
2.4
The 2010 Preqin > Consultancy and Research Support
1.3 10.9 20.8 Infrastructure Review > Tailored Data Downloads
0 Join
oin our group on Follow us on:
Q1 2007

Q2 2007

Q3 2007

Q4 2007

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Q3 2010

For more information and to register for a demo, please visit:

More information available at:
www.preqin.com/hedge
www.preqin.com/infrastructurereview

No. Funds Closed Aggregate Capital Raised ($bn) Search for Preqin www.twitter.com/preqin
Source: Preqin

© 2010 Preqin Ltd. / www.preqin.com

Preqin Research Report Fig. 4: Investor Plans for Infrastructure Investments in the Next 12
Months
Infrastructure Fundraising: November Like this report?
2010 (2)
30% 27% You can sign up to receive Infrastructure Spotlight, Preqin’s monthly
25% newsletter containing the latest research on infrastructure investors,
20% 18% 17%
15% performance and fundraising.
investors planned to make additional fund commitments in 15% 12% 11%
the following 12 months. 10% Visit: www.preqin.com/spotlight
5%
0%
In a similar survey conducted in October 2009, just Email: info@preqin.com

Will Not Invest

Opportunistically

Will Invest in Three

Will Invest in One

Will Invest in Two

Undecided
19% of institutional investors surveyed had invested in

Funds or More
Will Invest
London: +44 (0)20 7645 8888 New York: +1 212 808 3008

Funds
infrastructure funds during the year. As shown in Fig.

3, the majority of investors that invested in 2009 did
so sparingly, with 14% of those surveyed investing in
only one fund and just 5% committing to multiple funds.
In total, just 40% of investors planned to make further
commitments in 2010.
In contrast, Fig. 4 shows that 70% of investors surveyed
in June 2010 planned to make infrastructure investments
in the following 12 months, with 26% planning to make
multiple commitments. Many investors are likely to employ
a more conservative investment strategy in the future, as
demonstrated by the 27% of investors looking to invest on
an opportunistic basis in 2011.
Looking to the Future
The outlook for infrastructure fundraising is positive. The
$24bn raised by unlisted infrastructure funds so far in
2010 is well short of the $44.5bn raised in 2007, but is
Fig. 3: Proportion of Investors That Made Infrastructure
Commitments in 2009
Fund
Singapore: +65 6408 0122
Source: Preqin
approaching the $34.9bn raised in 2008.
We expect a further modest increase in fundraising
activity in Q4 2010, with a number of funds planning
to hold closes in the coming months. However, a
dramatic increase over the short term is unlikely as fund Infrastructure Online is the most comprehensive resource
managers are reducing their targets and continuing to find available to infrastructure professionals today. It is a vital
fundraising difficult. source of information whether you’re a GP, LP, fund of
funds, placement agent, lawyer, consultant or advisor.
The long-term outlook is encouraging, with almost 50% of Information is available across the following main areas:
active investors investing in the asset class via a separate
allocation to infrastructure. This shows that a growing > Investors
number of investors are creating dedicated pools of > Fund Terms
capital for infrastructure investment in order to capitalize > Fundraising
on the long-term stability that the asset class offers. > Performance
Preqin Hedge provides the most comprehensive institutional
investor
> Fundinformation
Managersto hedge fund industry professionals available
today. Whether you are a fund manager, third-party marketer, prime
> Deals
broker, consultant or advisor, Preqin Hedge is a vital information
service for you. Our unique products include information on:
For more information and to arrange a demo please visit:
OUT NOW > Institutional Investors Available as:
> Funds of Hedge Funds
The 2011 Preqin Alternatives www.preqin.com/infrastructure
> Advisors > Hard Copy Publications
The 2010 Preqin Investment Consultant Review

> Online Database Services

Alternative Investment > Consultancy and Research Support
Consultants Review > Tailored Data Downloads
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oin our group on Follow us on:
More information available at: For more information and to register for a demo, please visit:
www.preqin.com/aic www.preqin.com/hedge

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Source: Preqin

© 2010 Preqin Ltd. / www.preqin.com