According to IREI’s FundTracker database, infrastructure investment managers closed nine funds in second quarter 2019, raising nearly $16.3 billion. In second quarter 2018, 15 funds held final closings, raising more than $19 billion. In first quarter 2019, eight funds were closed, raising nearly $21.7 billion.
The increase in the number of funds closing in second quarter 2019 while raising considerably less compared with first quarter might indicate a pause in the mega-fund trend, but more data is needed to know for certain whether these oversized funds are losing their mojo.
However, when comparing fundraising during the first half of 2019 (17 funds raised $38.0 billion) with the first half of 2018 (25 funds raised $34.6 billion), it appears the mega-fund trend remains intact — fewer funds have raised more money in 2019 compared with first half 2018. The third and fourth quarters of 2019 could provide further insight into the strength of mega-fund capital raising.