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Core no more: The search for value leads some investors outside core markets
Core, core, core. This is not new news. For the past five years, core has been the safety net for portfolios. Investors want the stable and predictable returns/yields from their infrastructure portfolios — established, operational “brownfield” infrastructure assets in Europe and North America.
Look at the amount of capital seeking to invest in core. Managers are targeting approximately $106 billion from investors and the majority of these funds are core strategies. In 2012 the largest unlisted infrastructure fund of all time closed — Global Infrastructure Partners II, managed by Global Infrastructure Partners, which raised $8.25 billion. And in 2013, Brookfield Infrastructure Fund II, managed by Brookfield Asset Management, closed with $7 billion. Both are core infrastructure funds. In addition to the equity raised, leverage will multiply