According to the FundTracker database, infrastructure fundraising in fourth quarter lagged third quarter, though 12 funds raised more than $15.7 billion in equity capital. In third quarter, $15.9 billion was raised through seven fund closings. But fourth quarter 2020 fundraising was far short of the $41.1 billion raised a year ago in fourth quarter 2019.
The FundTracker database is a research product of Institutional Real Estate, Inc., parent company of Real Assets Adviser.
The megafund trend, meanwhile, also continued in 2020. Nine funds closed totaling $3 billion or more, including Antin IP’s Antin Infrastructure Partners IV ($7.6 billion) and Brookfield Asset Management’s Brookfield Infrastructure Fund IV ($20.0 billion).
In 2019, seven fund managers closed funds with more than $3 billion, including Goldman Sach’s $22.0 billion Global Infrastructure Partners IV fund, which closed in fourth quarter 2019, and EQT Partners EQT Infrastructure Fund IV, which closed in first quarter 2019 with more than $10.1 billion raised.
Smaller funds also closed during fourth quarter 2020, including HarbourVest Partners Adelaide, a dedicated core infrastructure vehicle, with $384 million in capital commitments. The fund targets long-term, low-risk, cash-generating core and core-plus infrastructure assets, primarily located in North America, Western Europe and Australia.
Swiss asset manager Fontavis, meanwhile, reached the end of its subscription period for its Fontavis Renewable Infrastructure Fund Europe (FORTE), closing out with €445 million ($540 million) in capital commitments from 24 investors.
FORTE is the third Fontavis Fund and the first one launched and marketed under its own brand, according to Fontavis. It is also the first Fontavis fund that is directly investing outside Switzerland. It focuses on direct investments in renewable energy generation, energy efficiency, power transmission and energy supply in the European Union and European Free Trade Association.
Drew Campbell is senior editor of Institutional Investing in Infrastructure, a sister publication to Read Assets Adviser.