Publications

- June 1, 2019: Vol. 6, Number 6

The mega-fund trend marches on: Q1 fund closings show average infrastructure fund sizes nearly doubling

by Drew Campbell

According to IREI’s FundTracker database, infrastructure investment managers closed five funds in first quarter 2019, raising nearly $19.4 billion. In first quarter 2018, five funds also held final closings, raising $10.6 billion, and in fourth quarter 2018, three funds had final closings, totaling $5.69 billion.

The year-over-year comparison among first-quarter fundraisings indicates the size of infrastructure funds has grown considerably. The average infrastructure fund size in first quarter 2019 was nearly $3.9 billion, while the average fund size in first quarter 2018 was approximately $2.1 billion.

During first quarter, Ardian raised $6.9 billion in less than six months for its latest infrastructure fund, Ardian Infrastructure Fund V. The fund focuses on upgrading and digitizing infrastructure assets in Europe, in transport (rail, road and airports), energy (gas, electricity and renewable energy) and other public infrastructure assets (health and environmental). The fund raised capital from 125 investors from Europe, North America, Asia and the Middle East.

Meridiam, meanwhile, reopened its Meridiam Infrastructure Africa Fund (MIAF) and completed final closing in the first quarter after raising a total amount of $613 million, more than its initial target of $573 million. The fund was originally launched in 2015 and initially raised $236 million.

The Africa Fund is the first Meridiam portfolio to systematically apply to all its projects the sustainable development criteria and objectives established by the United Nations in 2015.

Investment managers launched six new funds during first quarter 2019, compared with 14 fund launches in first quarter 2018, according to IREI’s FundTracker database.

Allianz Global Investors launched Allianz European Infrastructure Fund S.A. – RAIF. The fund is targeting €500 million ($566 million) and will raise capital from institutional investors. Future transactions will be funded by Allianz insurance companies, which will continue to invest at least 50 percent of the required capital, while the remaining share will be funded by AEIF, to help create strong alignment.

 

Drew Campbell is senior editor of Institutional Investing in Infrastructure.

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