There is no shortage of infrastructure, renewable energy and energy transition funds in the market seeking to raise capital. According to Infralogic data, at least 91 funds are actively in the process of raising at least EUR 185.55bn (USD 197.44bn) — and likely considerably more, given that many funds have not disclosed their fundraising targets.
Judging by the last two years’ results, many if not all of those funds will hit their targets. As reported, infrastructure, renewables and transition fundraising hit records in 2022 and 2021.
Still, as highlighted in Infralogic’s 2022 fundraising report, there is considerable uncertainty as to whether the slowdown in fundraising that occurred in 2H22 will continue.
Infralogic’s new Fund Market Tracker report will help you stay on top of who is raising funds for which types of investments and in what amounts. The report, which can be downloaded from Infralogic.com, includes milestones for vehicles currently in the market, according to Infralogic intelligence.
The report reflects one major theme that emerged throughout the second half of 2022 of GPs extending fundraising timelines into the new year due to LP constraints.
Several managers that pushed out timelines have imminent upcoming milestones. Notable imminent milestones include:
- Global Infrastructure Partners (GIP) V, which is looking to raise approximately USD 10bn at first close by the end of March;
- EQT Infrastructure Fund VI, which is targeting EUR 20bn and plans to wrap up a formal first close this month;
- Macquarie European Infrastructure 7, which plans a EUR 9bn final close in June — EUR 1bn above its initial target; and
- Aberdeen Standard Core Infrastructure III, which is expected to hold a first close by month’s end.
Meanwhile, several long-awaited funds are due to return to market in the coming months. Notable fundraisings on the horizon include:
- DigitalBridge Partners III, which is due to launch in June with a USD 12bn target;
- Stonepeak Infrastructure Partners aims to raise USD 20bn for Stonepeak Infrastructure Fund V, expected to launch this month;
- Tiger Infrastructure Partners returning with its fourth value-add fund, Tiger Infrastructure Fund IV, with a launch expected mid-year;
- ICG is expected to follow up its inaugural fund with the launch of a successor fund, ICG Infrastructure Equity Fund II, this month.
Energy transition and renewable energy funds represent 37% of the vehicles in the market, and an estimated 21% of capital looking to be raised.
Sterling-denominated funds remain out of favor with investors. Only one GBP-denominated fund is currently in the market. Most funds in the market (67%), are euro-denominated — although the US dollar continues to be seen as a safe haven for investors, with several managers domiciled outside of the US raising funds in USD.
Despite concerns over core infrastructure returns in a rising interest rate environment, at least USD 31.7bn is being raised for core infrastructure funds — representing a market share of 23%. This suggests GPs are betting that core infra’s inflation-linked properties will maintain their attractiveness.
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