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Laxman Pai, Opalesque Asia: Over the next 12 months, more than a third (36%) of investors plan to commit more capital to infrastructure funds than they did in the previous 12 months, said a Preqin investor update.
While this is still a significant figure and higher than for other alternative asset classes, it is down from 43% of investors surveyed one year ago, and 53% two years ago.
Although the largest proportion (61%) of surveyed investors believe asset valuations are the biggest challenge for return generation in the next 12 months, this figure is lower than for private equity and real estate, said the report.
Competition for assets (57%) and deal flow (42%) were the challenges cited by the next largest proportions of infrastructure investors.
Half of the infrastructure investors feel core-plus funds present the best opportunities, up notably from 37% of those surveyed at the start of H2 2018.
Appetite for higher-risk value-added funds also continues to increase, with 31% of investors planning to target this strategy in the next 12 months, up from 28% a year ago, Preqin said.
After investor interest in core funds tailed off over the first half of 2018, 34% of investors are now looking to target the strategy in the next 12 months, up from 29% one year ago.
The US and Western Europe (excluding the UK) remain the developed markets of choice for infrastructure investors, cited by 79% and 55% respectively as presenting the best investment oppor...................... To view our full article Click here
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