Institutions planning more infrastructure investments
Prequin report shows appetite strong.
BY Staff with files from Benefits Canada | September 18, 2013
Sixty-three percent of institutional investors plan to invest more capital in the asset class in the next year than they did in the last 12 months.
In addition, 58% of investors surveyed are planning to set aside a larger percentage of their total assets for investment in infrastructure in the longer term. This is a significantly higher proportion than is seen among investors in real estate (40%), private equity (34%) or hedge funds (23%).
Also, 47% of infrastructure investors plan to invest at least US$100 million in the asset class over the next 12 months, while 12% plan to invest more than $500 million.
“Investors are increasingly satisfied with the performance of their infrastructure portfolios and are looking to commit more capital to the asset class in the future,” says Preqin’s manager of infrastructure data, Elliot Bradbrook.
“We are already seeing this appetite from pension funds and other institutional investors translate into increased fundraising for unlisted infrastructure funds, and we expect to see further growth in the amount of institutional capital being put to work in infrastructure development in the coming months and years.”