The 2009 Preqin Infrastructure Review...infrastructure investment market’s momentum has stalled somewhat, rather than decreased, with investors still keen on the asset class and

© 2009 Preqin Ltd 1

The 2009 Preqin Infrastructure Review - Sample Pages

The 2009 Preqin Infrastructure Review- Sample Pages


The 2009 Preqin Infrastructure Review - Sample Pages

Contents1. Executive Summary 7

2. Data Sources 13

3. Review of the Unlisted Infrastructure Market 17- Growth of the unlisted fund market, evolution of unlisted funds, fund geographic

focus trends, project stage and asset focus trends, impact of PPP/PFIs, manager location and experience, emergence of fund of funds, predictions for the future of the asset class

4. Review of Recent Infrastructure Fundraising: 2007-2009 25- Fundraising by geographic focus and manager location, breakdown of fundraising

market by fund size, success in achieving targets, project stage focus, industry focus

5. Listings of Infrastructure Funds Closed Historically 31

6. Review of Current Infrastructure Fundraising Market 45- Interim closes, fund focus, manager location, project stage focus, placement agent

use, manager experience

7. Listings of Infrastructure Funds on the Road 51

8. Review of Listed Infrastructure Market 59- The state of the current listed infrastructure market, fund geographic focus break-

down, project stage and asset focus trends, manager location and experience, predictions for the future of listed funds

9. Listings of Listed Infrastructure Funds 65

10. Review of Infrastructure Fund of Funds 69- The growth of the infrastructure-specifi c fund of funds market, the role of vehicle-

type in the infrastructure marketplace, fundraising performance, vehicle focus breakdown, manager location

11. Listings of Infrastructure Fund of Funds 77

12. Analysis of Infrastructure Fund Terms and Conditions 81- Management fees, hurdle rates, carried interest, fee rebates to investors, manager

commitments, key man provisions, no-fault divorce clauses

13. Listings of Infrastructure Fund Terms and Conditions 87- Key terms and conditions for 27 infrastructure funds

14. Analysis of Infrastructure Fund Performance 91- Targeted performance, net IRRs, net multiples, dry powder

15. Listings of Infrastructure Fund Performance 99- Key performance metrics for 62 vehicles. All performance shown is net to investor

16. Regional Focus: Key Facts and Figures 103- Asia, Continental Europe, India, MENA, North America, South America, UK,

Global

17. Infrastructure Firm Preferences 115- Matrix showing fi rm preferences by location, industry and project stage

18. Infrastructure Firm Profi les (Unlisted Primary Fund Managers) 127

19. Infrastructure Firm Profi les (Listed Fund Managers) 263

20. Infrastructure Firm Profi les (Fund of Funds Managers) 293

21. Review of Institutional Investors in Infrastructure Funds 311- Why investors are attracted to infrastructure, make-up of investor universe,

commitment levels, investor size, source of allocations

22. Profi les for Key Investors in Infrastructure Funds 319- Detailed profi les for over 230 investors in infrastructure funds

23. Index 333- Infrastructure Firms

- Investors

- Figure Index

24. Glossary 345

25. Other Publications 349- Other Preqin Products


1. Executive Summary - Sample Pages

As Fig. A shows, the infrastructure fund industry has experienced signifi cant growth over the course of the 21st Century, growing from what most considered as a small subset of the private equity industry, into what is now often considered to be an asset class in its own right.

From Niche Sector to Separate Asset Class

Fig. B shows the proportions of investors using different sources from which to fund their infrastructure investments. 31% of infrastructure investors make investments in the asset class though their private equity allocations and 16% do so through their real assets allocations. Some investors prefer to make infrastructure investments through their private equity or real assets allocations so that they can maintain a strategy of investing in infrastructure opportunistically. However, an increasing number of investors are carving out separate allocations to the asset class as they put in place permanent programs for infrastructure investing. 53% of investors now have a separate allocation to infrastructure, up from the 47% observed in last year’s Review.

The reason for many investors to establish a separate allocation for infrastructure investments is due to the markedly different risk return profi le that is exhibited by the asset class in comparison with other private equity fund types such as buyout. Infrastructure fund investments tend to shoot for lower returns, but with a much lower risk profi le.

Executive SummaryFig. A: Infrastructure Fundraising Over Time

Fig. B: Split of Infrastructure Investors by Source of Infrastructure Allocation



Low Risk, Low Returns?

As Fig. C shows, a signifi cant proportion of vehicles (24%) are targeting returns between 10% and 13.9%, which is relatively low in comparison with the targeted returns of other alternative assets funds. A further 24% are targeting between 14% and 17.9%. The biggest data point is for fi rms targeting between 18% and 21.9%, which although is still shy of the returns regularly sought by other alternative asset managers, is still a relatively high return that would satisfy a signifi cant proportion of investors. Only 17% of funds in our sample were seeking returns at a level comparable with private equity buyout funds at 22-30%.

Although the relative immaturity of the asset class means that the majority of vehicles are not yet at a stage where their performance can be viewed in an especially meaningful way, the returns that are available are encouraging, with only a single fund on the Preqin database showing a negative IRR, and 40% of vehicles displaying a performance exceeding 18% IRR.

Infrastructure after the Crash

As Fig. A shows, infrastructure fundraising has clearly taken a massive hit following the onset of the credit crunch. At the mid-year point in 2009 only $3.5 billion had been raised by three funds achieving a fi nal close. The drop in fundraising clearly has little to do with the number of funds on the road – as Fig. D shows, the number of vehicles currently seeking capital is at record levels with 94 funds seeking an aggregate $96.8 billion. This reversal of fortunes raises questions as to whether this drop represents

Fig. C: Split of Targeted IRRs (%)

Fig. D: Growth of Infrastructure Funds on the RoadP

ropo

rtion

of F

unds

Targeted Net to Investor IRR (%)



a temporary blip or a more fundamental change in investor appetite.

Are Investors Still Keen on Infrastructure?

All the evidence shows that investors are keen to access infrastructure investments, with both existing investors showing a desire to make further investments in the future, and with new institutions establishing infrastructure allocations on a regular basis.

There has been increasing acknowledgement over recent years of the need for massive infrastructure development across the globe – for new assets in developing countries and for widespread renewal of existing assets in the developed world. Investors and managers alike began to realise the potential array of investment opportunities opening up.

Low Correlation to Other Asset Types

Additionally, infrastructure investments, particularly private unlisted fund investments, have a low correlation to other types of investments, and as such can be attractive to investors for portfolio diversifi cation purposes. The stable and uncorrelated returns produced by infrastructure investments derive from the nature of the services provided by infrastructure assets. Whatever the state of the economy or consumer confi dence, consumer demand for the services provided by infrastructure assets is generally quite inelastic, as the assets are often essential utilities such as water and electricity provision. Social infrastructure assets, such as schools and hospitals, are considered to be particularly defensive investments, as their revenue

streams are especially resilient in the face of an economic downturn.

An Attractive Prospect in the Current Market

The defensive properties displayed by infrastructure investments have meant that investor interest in the asset class has continued to grow at a time when other asset classes have been more badly affected by the recent economic crisis. In addition to this, numerous stimulus packages announced by governments around the world have included infrastructure as an important part of their overall plans, including providing backing by guaranteeing the fi nancing of infrastructure projects, which improves the risk/return profi le for investors and will stimulate investment in the sector. In times of recession, the consistent returns provided by investments in infrastructure, and the fact that they are easily predictable into the future, make the asset class an attractive prospect to investors.

Hedging Against Infl ation

However, investors have now begun to look at how conditions will develop as we move towards economic recovery. One popular belief is that the massive fi scal stimuli funded through government borrowing, as well as increases in money supply, will inevitably lead to rising infl ation in the future, and thus the consideration of the need to build protection against future infl ation increases into investment portfolios is growing in importance. Investments in infrastructure often have the benefi cial characteristic of providing an infl ation hedge. Infrastructure assets often have contracts in place that annually adjust tariffs charged according to a measure of the country’s rate of infl ation (consumer

price index or retail price index, for example) and therefore protect returns from the threat of infl ation, given the price and income inelasticity of demand for such assets in many circumstances.

Stalling Rather Than Decreasing

Whilst it is true that the pace of commitments has slowed, it appears that sentiment and optimism towards the asset class remains high and that new investors are still entering the market. The infrastructure investment market’s momentum has stalled somewhat, rather than decreased, with investors still keen on the asset class and waiting for the right time to make further commitments.

As a result of the shift in the global economy, many institutional investors have distressed investment portfolios as a result of falling valuations of assets across the board, and have not been able to make commitments at the same rate as in previous years.

Although other areas of alternatives have also been negatively affected by this situation, infrastructure funds tend to be amongst the largest of all closed-end investment funds, and are therefore reliant upon gaining big commitments from investors if they are to achieve a fi nal close. With relatively high minimum commitment levels, infrastructure funds will take more time to recover than other private equity fund types in the current market, as it is these types of commitments that will be most diffi cult to attract in the current market.

Momentum in the Fundraising Market

However, although fi nal closes have been scarce, we



have seen an increasing number of fund managers holding interim closes on their vehicles in market, enabling them to actively start investing while still seeking to attract institutional support for their latest vehicles.

In total, 40 of the 94 funds in market have held an interim close, with these vehicles having an aggregate total target of $39.1 billion. We would expect that as market conditions improve, the vast majority of these funds will be able to complete their fundraising within the next 18 months, and that the infrastructure asset class will once again see fundraising occurring at the high levels that we experienced in 2007 and 2008.

Although current conditions are certainly challenging, we believe that the infrastructure asset class represents a compelling investment opportunity for investors, and that once funds become available we will see a recovery in infrastructure fundraising, with the current economic turbulence actually helping to attract investors to the asset class.

The 2009 Preqin Infrastructure Review

All the data and analysis contained within the body of the Review has come from direct contact with the investors and fund managers wherever possible, with all fi rms listed having been given the opportunity to provide feedback and contribute additional information in order to make the publication as comprehensive as possible. As a result, the 2009 Preqin Infrastructure Review is more detailed and powerful that ever, with comprehensive global coverage of all different aspects of the market. We hope that you fi nd this year’s edition to be a useful tool, and as ever we welcome any feedback and suggestions that you may have.

© 2009 Preqin Ltd * = Fund Target 7

5. Listings of Infra Funds Closed - Sample Pages

Fund and Firm FundTarget (mn)

Close (mn) CloseDate

Project Stage Strategy

Geographical Focus Industry Focus Investors Fund Contact

Climate Change Investment I

150 EUR 150 EUR May-07 Asia, Central Europe, East Europe, North Africa, South America

Economic: Renewable Energy Nina Dohr-Pawlowitz

3C Consulting

3i India Infrastructure Fund 1,000 USD 1,200 USD Apr-08 Brownfield,Greenfield,SecondaryStage

Economic: Aviation/Aerospace, Energy, Roads, Sea Ports

3i Infrastructure, Alberta Investment Management Corporation, APG - All Pensions Group, Cavendish Limited, First Gulf Bank, Gartmore Private Equity, Lord Baltimore Capital Corporation, Lothian Pension Fund, Nationwide Insurance, Partners Group

Nadyne Mcmicoll, Jennifer Letki3i India

ABN AMRO Global Infrastructure Fund

1,000 EUR 1,100 EUR Mar-07 Brownfield,SecondaryStage

Europe, Global Economic: Aviation/Aerospace, Energy, Railway, Roads, Tunnels, Water, Waste Management, Sea Ports, Distribution/Storage Facilities

AP-Fonden 3, APG - All Pensions Group, Greater Manchester Pension Fund, Merimieselakekassa, PGGM, West Midlands Pension Fund

Hans Meissner, Hafeez Ahmed

AAICM Australia Social: Education Facilities, Healthcare/Medical Facilities, Prisons

Abraaj Infrastructure and Growth Capital Fund

2,000 USD 2,000 USD Dec-07 Brownfield,Greenfield

Asia, Middle East, North Africa

Economic: Energy, Natural Resources, Transportation, Utilities, Water, Sea Ports

Deutsche Bank Asset Management Arif Naqvi

Abraaj Capital Bahrain, United Arab Emirates

Social: Education Facilities, Healthcare/Medical Facilities

AC Infraestructuras 150 EUR Feb-06 Brownfield,SecondaryStage

Europe Economic: Energy Caixa Catalunya, Kutxa, Sa Nostra

AC Desarrollo Spain

Kagiso Infrastructure Empowerment Fund

649 ZAR Jan-06 Brownfield,SecondaryStage

Economic: Aviation/Aerospace, Energy, Railway, Telecom, Roads, Water, Sea Ports

Kagiso, Liberty Life, MetLife Insurance Company, Metropolitan Asset Managers, Old Mutual Investment Group (South Africa), RemgroAfrican Infrastructure

Investment ManagersSouth Africa Social: Prisons

African Infrastructure Investment Fund

1,320 ZAR Jun-04 Africa Economic: Aviation/Aerospace, Energy, Railway, Transportation, Telecom, Roads, Water, Sea Ports

Cape Joint Pension Fund, Capital Alliance Life, Eskom Pension and Provident Fund, MetLife Insurance Company, Metropolitan Asset Managers, Nedbank, Nordic Development Fund, Old Mutual Investment Group (South Africa), Public Investment Corporation, Standard Bank Group, Stanlib Asset Management Limited

African Infrastructure Investment Managers

South Africa Social


6. Review of the Current Fundraising Market - Sample Pages

The unlisted infrastructure market has grown rapidly in recent years as a result of increased institutional investor demand for exposure to infrastructure projects. This has resulted in a surge in the numbers of infrastructure funds on the road since the early 2000s. Fig. 6.1 shows the recent growth; in January 2007 there were 47 infrastructure funds raising capital, while a year later the fi gure had reached 77. By January 2009, there were 94 infrastructure funds

on the road targeting an aggregate $90.1 billion, more than double the $38.5 billion being sought in January 2007. Subsequently, infrastructure has been amongst the fastest growing private equity fund types in recent years.

As has been discussed in previous sections, competition for investor commitments has grown due to the effects of the global market crisis, and this has resulted in a record number of infrastructure funds in market as of June 2009. As Fig. 6.1 shows, there are currently 94 funds on the road seeking an aggregate $96.8 billion. Long-term investor appetite for infrastructure assets remains positive, but competition among fund managers will continue to be tough as investors with limited capital seek the best investment opportunities.

Interim Closes for Funds in Market

As of June 2009, 43% of infrastructure funds on the road had held an interim close. This represents an

eight percentage point increase from June 2008, when 34% of funds in market had held an interim close. This shows a good momentum in the market, and we would expect a high proportion of these funds to achieve a fi nal close by the end of 2010. Many fund managers are postponing fi nal close dates and prolonging the fundraising period or considering holding interim closes in order to begin investing capital sooner.

Funds being Abandoned / Put on Hold

Since the beginning of 2008, a total of 25 infrastructure funds have been abandoned or placed on-hold. This again highlights the challenging nature of fundraising during the market downturn.

Focus of Funds Currently on the Road

As shown in Fig. 6.2, more funds in market are focused on Asia and Rest of World than both Europe and North America as of June 2009. A total of 48 funds currently raising are focused outside of the developed

Review of the Current Unlisted

Infrastructure Fundraising Market

Fig. 6.1: Growth of Infrastructure Funds on the Road Fig. 6.2: Infrastructure Funds on the Road by Geographic Focus


16. Regional Focus: Key Facts and Figures - Sample Pages

Fig. 16.11: Ten Largest Funds Focused Primarily on India

Fund Name Firm Name Firm Location

Year Raised

Fund Size (Mn) Status

Macquarie State Bank of India Infrastructure Fund Macquarie Capital Funds Australia 2009 USD 2,000 1st Close

3i India Infrastructure Fund 3i UK 2008 USD 1,200 Closed

India Infrastructure Advantage Fund ICICI Venture Funds Management India 2008 USD 1,000 Raising

Principle Europa Indian Infrastructure Fund

Principle Europa Indian Equity Partners Switzerland 2009 USD 1,000 Raising

IDFC India Infrastructure Fund IDFC Project Equity Company India 2008 USD 1,000 2nd Close

JPMorgan Asian Infrastructure & Related Resources Opportunity Fund

JPMorgan - Infrastructure Investments Group US 2008 USD 1,000 2nd Close

Asian Giants Infrastructure Fund AMP Capital Investors Australia 2009 USD 750 1st Close

IDFC Private Equity Fund III IDFC Private Equity India 2008 USD 700 Closed

Old Lane India Specifi c Fund Old Lane Management US 2006 USD 500 Closed

Q India PE Fund QIEF Management Mauritius 2009 USD 500 Raising

Regional Focus: IndiaFig. 16.9: India Focused Infrastructure Fundraising

Fig. 16.10: Split of India Focused Infrastructure Market by Firm Experience

Fig. 16.12: Split of Funds Raised by Manager Geographic Location


18. Infrastructure Firm Profiles (Sample Pages)

Beehive Capital Tel: +44 (0)20 7291 5480 www.beehivecapital.com

Leverton House, 13 Bedford Square, London, WC1B 3RA, UK Established: 2001 Fax: +44 (0)20 7291 5492

Beehive Capital is a specialist fund management business that has developed a seasoned private equity funds management and back office platform. Beehive Capital has successfully raised two industry-specific private equity funds and follows a strategy of investing ‘narrow and deep’ into growth sectors. With an established team of professionals, Beehive Capital is able to provide a comprehensive fundmanagement support platform for its vehicles.

Beehive Water & Waste Fund Raising

Fund Size (mn): 400 EUR * Beehive Water and Waste Fund will invest in environmentally responsible and financially robustinfrastructure projects across Europe, the Middle East and Mediterranean North Africa. Target projectswill be greenfield, brownfield and secondary stage projects spanning water treatment, wastewatertreatment, desalination, waste treatment and waste to energy facilities.

Beehive Water and Waste Fund will invest predominantly in early-stage development opportunitiesacross desalination, wastewater and waste to energy projects that generate strong risk adjustedreturns and provide vital water and waste treatment capacity in the fund’s target regions. Selectivebrownfield and secondary investments may also be made providing all other investment criteria are metand they are likely to lead to further greenfield opportunities.

Investments by the fund will range in size from GBP 15 million to GBP 50 million of equity and may beincreased further subject to the availability of additional external funding or co-investment by fund LPs.

Up to 10% of the fund will be allocated to investment in innovative but not yet commercially developedwater and waste technologies. The fund expects to invest 30% to 60% of total commitments acrosswater and waste projects respectively and generate net IRRs to investors of greater than 15% over aseven-year fund life.

Strategy Allocation: Primary

Infrastructure Industry Preference:

- Economic: Environmental Services, Renewable Energy, Water, Waste Management,Clean Technology

PPP/PFI Investments: No

Project Stage Strategy: Brownfield (15%), Greenfield (75%), Secondary Stage (10%)

Regions: Europe, Middle East, North Africa

Fund Contact: Paul Capell

Contacts

Name: Job: Tel: Email:

Paul Capell Managing Partner +44 (0)20 7291 5472 [email protected]

Jonathan Treacher Partner +44 (0)20 7291 5486 [email protected]



Carlyle Group Funds Raised (mn): 1,835 USD Tel: +1 202 729 5626 www.carlyle.com

1001 Pennsylvania Avenue, Suite 220 South, Washington, DC, 20004-2505, US Established: 1987 Fax: +1 202 347 1818 [email protected]

Founded in 1987, Carlyle Group is one of the world's largest private equity firms, with more than USD 81.1 billion under management. The firm manages over 60 funds in five investment disciplines (buyout,venture and growth capital, real estate and leveraged finance), focusing on industries including aerospace, defence, automotive transportation, consumer, retail, energy and power, infrastructure, healthcare,industrial, technology, media and telecommunications. The firm relies on a team of 575 investment professionals operating out of offices in 21 countries to uncover superior opportunities in North America,Europe, Asia, Australia, the Middle East/North Africa and Latin America.

Carlyle Riverstone Renewable Energy Infrastructure Fund II Raising

Fund Size (mn): 1,200 USD * Carlyle Riverstone Renewable Energy Infrastructure Fund II plans to follow its predecessor and investin North American renewable energy infrastructure assets in sectors including solar, hydro, wind andbiomass energy utilisation.



- Economic: Energy, Renewable Energy

Regions: North America

Carlyle Infrastructure Partners Closed (2007)

Fund Size (mn): 1,150 USD Carlyle Infrastructure Partners focuses primarily on investment opportunities within the US and Canadabut up to 30% may be invested in other countries. The vehicle seeks exposure to a variety of economicinfrastructure sectors. It targets secondary stage economic infrastructure investments primarily in thetransportation and water industries, but also includes shipping ports, airports and bridges. It alsoinvests in assets and installations of public convenience and necessity (e.g. parking facilities, stadiums,hospitals, schools and correctional facilities).



- Economic: Aviation/Aerospace, Bridges, Energy, Parking Lots, Railway, Transportation,Roads, Water, Waste Management, Sea Ports

- Social: Education Facilities, Healthcare/Medical Facilities, Prisons

Project Stage Strategy: Brownfield, Secondary Stage

Regions: Global, North America

Fund Contact: Robert Dove, Barry Gold

Carlyle Riverstone Renewable Energy Infrastructure Fund I Closed (2006)

Fund Size (mn): 685 USD Carlyle Riverstone Renewable Energy Infrastructure Fund I is a North American focused infrastructurevehicle seeking to generate long-term capital appreciation through private equity investments inrenewable energy infrastructure assets in sectors including solar, hydro, wind and biomass energyutilisation. The vehicle targets both brownfield and secondary stage infrastructure projects. The fundinvests in projects ranging from USD 100 million to USD 1 billion in enterprise value.



- Economic: Renewable Energy

Project Stage Strategy: Brownfield, Secondary Stage

Regions: North America

Contacts


Robert Dove Managing Director - Infrastructure +1 202 729 5626 [email protected]

Barry Gold Managing Director - Infrastructure +1 212 381 4900 [email protected]



Dragon Capital Tel: +84 (0)8 3823 9355 www.dragoncapital.com

1901 Me Linh Point, 2 Ngo Duc Ke Street, District 1, Ho Chi Minh City, Vietnam Established: 1994 Fax: +84 (0)8 3823 9366 [email protected]

Dragon Capital is an integrated financial services provider with an exclusive focus on Vietnam’s capital markets. Established in 1994, the group is now one of the largest and most experienced asset managersin the country with total group assets in excess of USD 1 billion. With the launch of subsequent funds, the group has evolved into a fully diversified investment institution, offering its client base acomprehensive range of financial services: corporate finance, fund management, direct and indirect investments and capital markets. The firm plans to operate within the infrastructure sector through its cleanenergy investment vehicle which will seek investments in renewable energy projects.

Mekong Brahmaputra Clean Development Fund Announced

Fund Size (mn): 100 USD * Mekong Brahmaputra Clean Development Fund is the first green development fund to focus ondeploying capital in renewable energy and low carbon businesses and projects in some of Asia’sfastest developing countries, principally Vietnam, Thailand and Nepal, and also Sri Lanka, Laos,Cambodia, Bhutan and Bangladesh. The fund will invest in a variety of renewable energy fieldsincluding hydro, wind, waste management and other energy saving facilities. It plans to work closelywith experienced development companies throughout the sub-continent. The fund excludesinvestments in biofuels and the more developed emerging markets of India and China.



- Economic: Clean Technology, Renewable Energy, Waste Management

PPP/PFI Investments: Yes

Project Stage Strategy: Brownfield, Greenfield

Countries: Bangladesh, Bhutan, Cambodia, Laos, Nepal, Sri Lanka, Thailand, Vietnam

Fund Contact: Rachel Hill

Contacts


Gavin Hill Investment Manager +84 (0)9 4689 2845 [email protected]

Rachel Hill Director +44 (0)7971 214 852 [email protected]

Gavin Smith Fund Manager +84 (0)8 3823 9355 [email protected]


21. Review of Investors in Infra. Funds - Sample Pages

can maintain a strategy of investing in infrastructure opportunistically. However, an increasing number of investors are carving out separate allocations to the asset class as they put in place permanent programs for infrastructure investing. 53% of investors now have a separate allocation to infrastructure, up from the 47% observed in last year’s Review.

Infrastructure Investors’ Project Stage Preferences

Fig. 21.5 shows the proportions of infrastructure investors that are interested in investing in the different project stages of infrastructure assets. Approximately half of all investors in infrastructure will invest in any of the three project stages of greenfi eld, brownfi eld and secondary stage. 4% of investors show a preference for investing only in greenfi eld focused investments, 5% for brownfi eld only and 9% for secondary stage only. Expectedly, only a very small proportion of investors, around 1%, look to invest in the greenfi eld and secondary stages without also making brownfi eld stage investments. 16% of investors will invest in greenfi eld and brownfi eld focused investments only, while 15% look for brownfi eld and secondary stage investments only.

First-Time Funds

Fig. 21.6 shows the proportion of infrastructure investors that are willing to invest in fi rst-time infrastructure funds. The vast majority of investors, nearly 70%, will invest in fi rst-time funds. This is unsurprising given the relative youth of infrastructure fund investing as an investment sector, and it is likely that this fi gure will decrease somewhat as the industry matures. A further 4% will invest in fi rst-time funds managed by teams that have spun out of a parent fi rm, while an additional 9% would potentially consider

Fig. 21.5: Split of Investors by Infrastructure Project Type Preference

Fig. 21.6: Proportion of Investors that Invest in First-Time Funds


22. Profiles of Investors in Infra. Funds - Sample Pages

Dallas Police & Fire Pension System Public Pension Fund

2301 North Akard Street, Suite 200, Dallas, TX, 75201, US

Tel: +1 214 638 3863 Web: www.dpfp.org

Fax: +1 214 638 6403 Email: [email protected]

Dallas Police & Fire Pension System has been active in the infrastructure asset class since 2007. Ithas a diverse investment strategy, featuring direct investments in infrastructure projects andcommitments to unlisted infrastructure investment vehicles. The pension system commits capital tothe asset class via its allocation to private equity.

As of Q1 2009, Dallas Police & Fire Pension System had committed to three infrastructure-specificvehicles: a USD 50 million commitment to RREEF North America Infrastructure Fund, a USD 37million investment in JPMorgan Asian Infrastructure & Related Resources Opportunity Fund and afurther USD 20 million commitment to JPMorgan Infrastructure Investments Fund. These vehiclesprovide the pension scheme with exposure to a global portfolio of infrastructure assets in core sectorsincluding transportation, utilities and water, as well as social infrastructure projects.

In March 2009, Dallas Police & Fire Pension System invested in infrastructure through LBJDevelopment Partners, a consortium hired to design and construct a new USD 4 billion highwayinfrastructure project in Texas. The pension system invested USD 445 million in the consortium, whichconsists of Macquarie Funds Group, Cintra, Ferrovial Agroman and Meridiam Infrastructure Fund.Dallas Police & Fire Pension System made the investment to prove how US pension funds andprivate investors could meet the growing demand for US public infrastructure projects in the future.The project further exposed the pension plan to North American toll road assets through directinvestment strategies.

As of Q2 2009, Dallas Police & Fire Pension System had USD 107 million invested in theinfrastructure asset class through fund commitments, which equated to approximately 3% of totalassets under management. The pension plan will continue to invest capital in infrastructure projectsover the coming 12 months, through both direct investment strategies and unlisted infrastructurefunds.

Total Assets (mn): 3,500 USD

Source of Allocation to Infrastructure Funds: Part of Private Equity Allocation

Committed to Infrastructure (mn): 107 USD 3.1% of Total Assets

Preferences

Direct Unlisted Funds Listed Funds

• •

Greenfield BrownfieldSecondary

StagePrimary Fund of Funds Secondary Mezzanine

• • •

N. America Europe AsiaEmerging Markets

Global First-Time FundsPPP/PFI

Investments

• • Yes

Infrastructure Industry Preferences (Based on Past Investments and Stated Preferences)

Economic: Energy, Roads, Sea Ports, Transportation, Utilities, Waste Management, Water

Sample Fund Investments

Fund Name Manager Vintage Fund SizeFund Focus

Committed (mn)

RREEF North America Infrastructure Fund

RREEF Infrastructure 2009 500 USD* US 50.0 USD

JPMorgan Asian Infrastructure & Related Resources Opportunity Fund

JPMorgan - Infrastructure Investments Group

20081,000 USD*

ROW 37.0 USD

JPMorgan Infrastructure Investments Fund

JPMorgan - Infrastructure Investments Group

20065,000 USD*

US 20.0 USD

Contact Name Position Tel Email

Brian BlakeAssistant Administrator Investments

+1 214 638 3863 [email protected]

Talal ElassDirector - Global Investments


Mike Taylor CFO +1 214 638 3863 [email protected]



TAQA New World Investment Company

Abu Dhabi National Energy Company PJSC “TAQA”, P.O. Box: 55224, Abu Dhabi, 55224, UnitedArab Emirates

Tel: +971 2 694 3662 Web: www.taqa.ae

Fax: +971 2 642 2555 Email: [email protected]

TAQA New World is an active investor in the infrastructure asset class. TAQA has created anextensive and diversified infrastructure portfolio via direct investments and through unlistedinfrastructure funds. The investment company was originally established to make investments purelyin the energy sector but through its unlisted fund commitments has also gained exposure to a range ofother sectors in both economic and social industries. TAQA has a global investment mandate butfocuses on markets in Asia, the Middle East, Europe, Africa and the US.

In September 2006, TAQA New World entered into an agreement with Carlyle Group to invest AED735 million (USD 200 million) in Carlyle Infrastructure Partners over a period of five years. Theinvestment signalled a movement away from direct investment strategies and provided the investmentcompany with exposure to a global portfolio of infrastructure assets in sectors including energy,healthcare, transportation, waste management and water.

As of Q2 2009, TAQA New World had invested AED 191 million (USD 52 million) of the AED 735million it originally committed to Carlyle Infrastructure Partners. The investment company wasplanning to increase its exposure to the energy sector through direct investment strategies in 2009 intandem with its relationship with Carlyle Group.

Total Assets (mn): 86,387 AED

Source of Allocation to Infrastructure Funds: Separate Infrastructure Allocation

Committed to Infrastructure (mn): 191 AED 0.2% of Total Assets

Preferences


•



• • •



Investments

• •


Economic: Aviation/Aerospace, Bridges, Energy, Natural Resources, Parking Lots, Railway, Roads,Sea Ports, Transportation, Tunnels, Waste Management, Water

Social: Education Facilities, Healthcare/Medical Facilities, Prisons, Social



Committed (mn)

Carlyle Infrastructure Partners

Carlyle Group 2007 1,150 USD US 200.0 USD


Peter Barker-Homek CEO +971 2 694 [email protected]

Doug Fraser CFO +971 2 694 3662 [email protected]

Pablo H. ChavezExecutive General Manager




West Yorkshire Pension Fund Public Pension Fund

4th Floor Britannia House, PO Box 67, Bradford, BD1 1UP, UK

Tel: +44 (0)1274 434 999 Web: www.wypf.org.uk

Fax: +44 (0)1274 723 228 Email: [email protected]

West Yorkshire Pension Fund (WYPF) is an active investor in the infrastructure asset class through itsallocation to private equity. The pension scheme has been investing in the asset class since 2006,when it made a GBP 50 million investment in GS Infrastructure Partners I and a EUR 20 millioncommitment to European Clean Energy Partners. These commitments provide the pension plan withexposure to a portfolio of North American and European infrastructure assets in a range of industriesincluding transportation, utilities and renewable energy.

West Yorkshire Pension Fund does not have a limit on the amount of exposure to infrastructurevehicles permitted in its private equity portfolio. As of December 2008, WYPF had 5% of total assetsdedicated to private equity, which equated to around GBP 315 million potentially available forinvestment in infrastructure.

Also in December 2008, West Yorkshire Pension Fund announced it was planning to increase itsprivate equity exposure annually over the coming years, and subsequently resulted in increasedinvestments in the infrastructure asset class. The increase was at the expense of the pension plan’straditional investment portfolio.

As of April 2009, West Yorkshire Pension Fund had 2% of total assets invested in infrastructure andwas planning to continue investing in the asset class within a set 2% to 6% range targeted for privateequity investment. WYPF intended to further diversify its infrastructure portfolio by investing inbetween one and two infrastructure fund of funds vehicles over the coming 12 months. It alsoexpressed an interest in funds with an element of secondary market activity.

Total Assets (mn): 6,000 GBP

Source of Allocation to Infrastructure Funds: Part of Private Equity Allocation

Committed to Infrastructure (mn): 120 GBP 2.0% of Total Assets

Preferences


•



• • • • •



Investments

• • • • • No


Economic: Aviation/Aerospace, Energy, Renewable Energy, Roads, Sea Ports, Transportation,Utilities

General Consultant: Hewitt Associates



Committed (mn)

European Clean Energy Fund

TCW Group 2006 354 EUR Europe 13.5 GBP

GS Infrastructure Partners I

GS Infrastructure Investment Group

2006 6,500 USD US 26.5 GBP


Simon EdwardsAlternative Investments Manager

+44 (0)1274 432 [email protected]

Susan HuddlestonSenior Investment Officer


Stuart ImesonHead of Pensions & Investments


2009 Preqin Infrastructure Review:Order Form

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I would like to purchase the 2009 Preqin Infrastructure Review£350 + £10 Shipping $595 + $40 Shipping €385 + €25 Shipping

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The 2009 Preqin Infrastructure Review

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I would like to purchase the 2009 Preqin Infrastructure Review Graphs & Charts Data Pack in MS Excel Format:$300 / £175 / €185

© 2009 Preqin Ltd. / www.preqin.com

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(contains all underlying data for charts and graphs contained in the publication. Only available alongside purchase of the publication).

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The 2009 Preqin Infrastructure Review is the most comprehensive examination of the unlisted infrastructure fund market ever produced. With exclusive information on over 250 fi rms, 400 funds and over 230 investors in the sector, plus detailed analysis reviewing every aspect of the industry, the Preqin Infrastructure Review is a vital purchase for fund managers, fundraising professionals, advisors, consultants, legal fi rms and investors in this rapidly growing market. Features of this year’s publication include:

Detailed analysis examining the history and development of the infrastructure market; recent funds closed; current fundraising market; fund terms and conditions; investors; performance; the listed fund market; plus separate sections showing key facts and fi gures for the most important regions. Fund terms and conditions listings for 27 vehicles, plus transparent performance data for 62 infrastructure funds (all performance data is net to investors). Profi les for over 250 infrastructure fi rms and 400 funds, including detailed investment strategies and key information. Profi les for over 230 investors in the sector, including investment plans and key contact details.

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The 2009 Preqin Infrastructure Review...infrastructure investment market’s momentum has stalled somewhat, rather than decreased, with investors still keen on the asset class and

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