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Laxman Pai, Opalesque Asia: Infrastructure fundraising experienced a dramatic slowdown in Q3 2019 compared to the preceding quarter, Preqin data showed.
While 19 funds reached a final close, they secured only $8.4bn collectively, the lowest quarterly figure since Q2 2016. However, across the whole fundraising market, more than $15bn was raised in Q3 2019 by funds holding interim closes.
Only six North America- and five Europe-focused funds held a final close in Q3, raising a combined $2.6bn and $2.3bn respectively.
Just one Asia-focused fund closed, raising $500mn. By contrast, seven funds closed targeting the Rest of World, raising a combined $3.1bn.
More than four out of five funds closed so far this year (83%) were in the market for less than two years, demonstrating the continued institutional demand for infrastructure.
2019 has seen a smaller proportion of funds on the road for more than 25 months, at 17% compared to 23% for 2018.
The involvement of fund managers and investors alike in the non-core segments of the market is demonstrated by the dominance of value-added and opportunistic strategy funds, which raised $2.4bn and $2.3bn respectively, comprising 57% of total capital raised.
241 funds on the road as of the start of Q4
There are a record of 241 funds on the road as of the start of Q4, targeting a combined $200bn in investor commitments.
With total capital targeted up 5% from the start of Q3, it is clear that fund...................... To view our full article Click here
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