The Australian investor is still on top by a wide margin, but independent funds have decisively beaten bank-affiliated concerns in the fundraising stakes. Fundraising conditions have also toughened, with the 30 largest investors raising less money over the last five years.
The Melbourne-based fund manager has raised an extra A$400m since last May. Westbourne, which has already invested some A$800m of the fund, expects to reach A$2bn in capital commitments by the end of the year.
As a fledgling asset class, data on infrastructure deal flow is sketchy. First State’s Ritesh Prasad explains how new research is beginning to shed light on relatively crowded and untapped areas of investment.
With politicians across the world feeling the heat, we take a look at four manifestations of political risk.
Macquarie Infrastructure and Real Assets will also invest $50m in the fund alongside Manila’s largest state-backed pension fund, which is providing a cornerstone investment of $300m. Two other undisclosed foreign investors are also anchoring the fund.
Aviva Life & Pensions UK, the EIB and the Development Bank of Japan have backed the debt fund’s first close. The Aviva/Hadrian’s Wall Capital vehicle is targeting £/€1bn to invest in low-risk infrastructure across the UK and Europe.
After several delays, pre-qualifications are now expected by June 28 with final bids at auction set for August 9. In addition, the authorities have reduced a required bidding bond from $200m – which one interested bidder had described as ‘crazy’ – to $50m.
The Dutch fund manager is more than halfway to its final target of €600m after just four months on the fundraising trail. The firm has also announced that the fund will explore selective opportunities in Canada in addition to DIF’s traditional hunting ground of Europe.
The European Union will earmark €230m to road-test the EIB’s initiative to credit-enhance private sector infrastructure bonds. It is expected that this commitment could unlock some €4.6bn in private investment.
The EU-focused debut fund has now completed three deals, all in the renewable energy sector and all three involving the acquisition of stakes from EDF Energies Nouvelles. Marguerite, which raised €710m at first close, has now invested a total of €80m in equity.
RREEF has lined up the capital for its second infrastructure fund – which so far has held a first close on some €620m – but these commitments will only trickle through once the sale of Deutsche Bank’s global alternative asset management business is concluded.
The Julian Robertson (pictured) backed infrastructure fund is currently hunting for a first deal to help unlock a fundraising that could reach $500m. The fund held a first close last September and has currently raised some $175m.
Canadian fund manager Aquila Infrastructure Management, through its Infrastructure Coalition Program – which posted a C$105m first close last year – has backed Riverbank Power Corp’s transition from developer to independent power producer.
The good news is that infrastructure fundraising has rebounded from the global financial crisis; the bad news is that the market will remain crowded and competitive, finds a new survey from Probitas Partners.
The OMERS-led Global Strategic Investment Alliance may have its work cut out to get close to its $20bn target – but it still poses a challenge to infrastructure fund managers.