The infrastructure fundraising market rallied in the third quarter, after declining from the most recent peak of US$15.9 billion seen in the second quarter of 2014, according to research firm Preqin.
The US$13.1 billion secured by unlisted funds closed in the quarter represents a 51% increase on the US$8.7 billion raised in the second quarter, and brings the total aggregate capital raised in 2015 year to date to US$27.2 billion.
Transaction activity also continued its accelerating trend through third quarter. One hundred and fifty-eight deals were completed, up from 142 in the second quarter, and a further increase from the 138 completed in the first quarter. While deal activity has yet to match 2014 levels, estimated total deal value in the quarter was US$99.4 billion, up from US$83.8 billion last quarter.
Key findings include:
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Funds closed so far in 2015 have raised 101% of their targets on average, a higher proportion than in any year apart from 2014, when funds raised an average of 110% of their targets.
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The largest fund to close in third quarter 2015 was the ArcLight Energy Partners Fund VI. Closing on $5.6 billion, it is the seventh biggest unlisted infrastructure fund ever to close.
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The number of unlisted infrastructure funds in market reached a record high of 160 at the start of fourth quarter, targeting a combined US$95 billion in capital commitments. The number of funds increased from the 151 funds in market at the end of last quarter, while the aggregate capital target did not match the US$99 billion sought in second quarter.
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The largest fund currently being marketed is the Alinda Infrastructure Fund III, which is seeking US$5 billion in capital commitments. Seven of the 10 biggest funds in market focus primarily on North America.
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The largest infrastructure deal completed in third quarter 2015 was the acquisition of US natural resources storage company AGL Resources, acquired by Southern Company for US$12 billion in August.
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The proportion of global infrastructure deals that took place in North America and Europe increased through the quarter, rising from 41% and 31% respectively in second quarter to 47% and 36% in third quarter. In the same period, the proportion of infrastructure deals in Asia fell 10 percentage points to 4%.
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An increased proportion of infrastructure deals completed in third quarter 2015 were in the transport industry. While only accounting for 10% of deals in third quarter2014, transport deals made up 25% of third quarter 2015 deal activity. Transport deals have comprised 23% of deals done in 2015 year to date, compared with 17% in 2014.
