Infrastructure fund managers raising capital have had to navigate the same ups and downs that managers in most other markets have experienced during the past few years, and with fundraising totals in constant flux, it is difficult to know exactly where the road will lead. A surge at the end of 2011 buoyed infrastructure investors and managers heading into 2012; however, fundraising results in the first half of the year have not met expectations.
To understand where you’re headed, it’s often helpful to know from where you came.
In 2007, some 46 infrastructure funds were launched with total capital raised of $27.05 billion, according to information tracked by Institutional Real Estate, Inc. (IREI). In that year, the most popular geographies for investment were Europe (34 percent), North America (25 percent) and Asia (25 percent), and the most popular sectors were energy and transportation (58 percent) followed by diversified strategies (33 percent).