2019 is set to be yet another record year of infrastructure capital raising, driven by a small number of large-cap “mega-funds.” It is likely that the largest five funds due to close this year will raise $60 billion of capital, over 80 percent of the total raised by all funds during 2018.

For many investors, these mega-funds represent a convenient and appropriate way to gain exposure to the infrastructure asset class. They provide “global” exposure alongside many other investors, reducing the time and resources required to oversee the infrastructure allocation. Today, however, such allocators are starting to look outside this small universe of mega-funds and complement these “global” portfolios with more targeted strategies, such as those focusing on a particular geography or sector, or an attractive area of the risk/return spectrum.

While mid-market funds can provide attractive diversification options to the large-cap global strategies in terms of sector a