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- March 1, 2017: Vol. 10, Number 3

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Infrastructure fundraising cycle slows: Average fund took nearly 20 percent longer to close in 2016 than 2015

by Sheila Hopkins

The average time for infrastructure private equity funds to be on offer from start to finish has steadily fallen since 2012, reaching a low of 15.4 months in 2015. That year, the trimmed mean, which drops the top and bottom 5 percent, was even lower at 13.8 months, with the median coming in at a remarkable 11.0 months. In the years to come, we might very well look back on 2015 as the benchmark to compare all other years to, as 2016 tells a very different story.

Infrastructure funds reaching a final close in 2016 had been fundraising for an average of 18.2 months. That falls to 17.6 months when using a trimmed mean, while the median falls a bit further to 16.5 months. Funds closing in 2016 took longer to close than any year since 2012, when it took an average of 18.8 months to close. The extension of average fundraising time likely reflects the difficulty managers face in finding appropriate deals. Investors see no reason to commit additional capital when current allocations h

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