According to preliminary data from IREI’s FundTracker database, infrastructure fundraising in second quarter 2020 fell considerably compared to first quarter, with eight funds raising more than $13 billion in the second quarter. In first quarter, 14 funds raised more than $39 billion, and in fourth quarter 2019 eight funds closed on more than $41 billion.

The decline in both capital raised and funds closed resulted in an average fund size in second quarter of $1.7 billion. This compares with an average fund size of $2.8 billion in first quarter and $5.1 billion in fourth quarter 2019.

The declines in fund size during the past three quarters is a possible indication of a waning appetite for megafunds, something the market has been anticipating and which could open the market for smaller and emerging manager funds.

During the quarter, London-based Arcus Infrastructure Partners completed a final closing of its second fund, Arcus European Infrastructure Fund 2 (AE