Project Finance Copying and distributing are prohibited without permission of the publisher

Limited partners

06 February 2009

Infrastructure funds have plenty of equity ready to be deployed, as they benefit from cautious investors looking for a new, more solid, asset class. But their challenge in 2009 will be negotiating with large groups of banks on restrictive packages. By Michael Marray.

Read more: [infrastructure funds]

With stockmarkets and the credit and commodities markets in disarray, and with the leveraged buyout market stalled, the pension fund and institutional investor flight to infrastructure continues to grow as fund managers seek portfolio diversification and long-term investments with cashflow certainty.

A number of large infrastructure funds have attracted new capital over the past six months, despite the worsening global economy, and more are on the way from entities such as Citigroup, Goldman Sachs and Macquarie. New York based private equity firm Kohlberg Kravis Roberts is building up its infrastructure team ahead of the upcoming launch of a $4 billion fund. Barclays Private Equity has also raised around Eu450 million for its Eu1 billion ($1.3 billion) Barclays Integrated Infrastructure Fund (BIIF). And in November 2008 private equity-style closed-end fund M&G Investment Management (part of Prudential Group) closed the eighteen month ramp up of its Infracapital Partners fund at £910 million...


Upcoming Events

Change font size: Switch to default font size Switch to medium font size Switch to large font size