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Laxman Pai, Opalesque Asia: Despite 2022 being characterized by investor concern over monetary policy and geopolitical tensions, it was a record year of infrastructure fundraising, with $139bn raised at the end of Q3 2022 by 67 funds, said a study.
According to the 'Preqin Global Report 2023: Infrastructure', the record year of 2022 was driven by a major rise in the share of fundraising by funds with North America as their primary target region, reaching 68% against a 42% average between 2011 and 2021.
Looking at assets under management (AUM), Preqin's data shows how infrastructure is one of the fastest-growing asset classes in recent years, topping $1tn by end of Q1 2022.
Based on the firm's 2027 forecasts, Preqin expects infrastructure AUM to continue to grow fast, achieving a compound annual growth rate (CAGR) of 13.3%. In terms of the geographic focus of current funds in the market, from January to the end of Q3 2022, Europe saw the strongest growth by number, up by 35% to 165, versus a flat number of funds targeting North America from 117 to 118.
Aggregate capital targeted by funds in the market over this period has risen 26% to reach $276bn in Q3 2022, it said.
Meanwhile, in 2020, 12% of investors cited interest rate changes as a key challenge for return generation, according to the Preqin investor survey. Two years later, in 2022, the percentage grew by 44 percentage points to 56%.
Another concern is the high levels of inflation, which is...................... To view our full article Click here
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