Infra funds raise $2.8bn globally in June quarter: Preqin

Infrastructure funds mopped-up USD 2.8 billion globally in the April-June period of 2011, a slight increase from the previous quarter and is expected to pick up in the coming six months, says a report.

According to a research report by Preqin, six infrastructure funds garnered USD 2.8 billion in the second quarter of 2011 globally as compared to USD 2.7 billion raised in previous quarter. Thus, representing a growth of 4%.

Besides, 128 unlisted infrastructure funds are currently seeking to raise a total of USD 92.1 billion, a 7% increase since the start of the year.

"Our data hints at further improvements in investor and fund manager activity, so we do expect fund-raising and deal flow to pick-up throughout the second half of 2011," Preqin Manager (Infrastructure Data) Elliot Bradbrook said.

He said 40% of respondents to the second quarter investor survey stated plans to invest in at least one infrastructure fund in the coming 12 months and a further 22% planning to invest opportunistically.

"This shows a healthy appetite for infrastructure funds. However, ongoing investor caution will mean only those funds managers offering the most attractive opportunities will be successful," Bradbrook said.

However, Bradbrook said deal flow is still restricted by the limited availability and high cost of long-term debt financing.

The largest fund currently in the market is Global Infrastructure Partners II, which is targeting between USD 5 and USD 6 billion.

During the quarter, 45 deals were completed by unlisted infrastructure fund managers, compared to 43 in the first quarter of 2011.