THE WORLD S BIGGEST CAPITAL RAISERS

Transcription

1 Issue 87 November 2017 infrastructureinvestor.com FOR THE WORLD S INFRASTRUCTURE MARKETS 50 THE WORLD S BIGGEST CAPITAL RAISERS

2 A rising tide 50 The top 50 infrastructure managers in the world are raising more money than ever, with Macquarie holding strong at the top of a $316bn cash pile If last year hinted at the strength of the sector, this year confirmed it with the eighth edition of our ranking of the world s largest infrastructure investors showing managers sitting on more money than ever. It is the second year since we formally expanded it to 50 firms and 2017 s report shows an impressive 12 per cent rise in funds raised to $316 billion, from $282 billion in That will come as no surprise if you ve been following our fundraising coverage and its steady stream of headlines detailing oversubscribed closes and frequently revised hard-caps. Similar to last year s II 50, you will find that a significant portion $122 billion, or 38 percent of the amount raised is concentrated in the hands of the top five managers. However, what hasn t changed is that Macquarie Infrastructure & Real Assets still reigns supreme with $36.5 billion raised, holding its position which it has maintained since inception at the top of the II 50. Brookfield, with $29.9 billion, is still within touching distance and it s hard not to look at the top three spots and wonder if MIRA s reign, fuelled by a multi-pronged strategy of regional vehicle, won t finally end when the next mega-fund from Brookfield or Global Infrastructure Partners emerges (GIP sits at number three with $26.8 billion raised). Speaking of mega-funds, Blackstone s $40 billion open-ended vehicle, anchored by a $20 billion commitment from Saudi Arabia s Public Investment Fund, is sure to make its presence felt in the ranking once it formally achieves a close. A full explanation of our methodology can be found in the following pages, but we are still measuring capital raised over an approximate five-year period for the purposes of this edition of the II 50, covering the period between 1 January 2012 and 31 August As always, there are some notable changes to this year s edition, starting with two new entrants from Asia: Ping An Asset Management, charting at 26 with $3.7 billion amassed; and China Communication Construction Company, sitting at 41 with $2.4 billion. Also worth noting, and definitely a sign of the times, is the presence of the Green Investment Group (formerly known as the UK s Green Investment Bank, prior to its acquisition by Macquarie Group) and Mirova two outfits with strong clean energy credentials sitting at number 49 and 50 with $1.4 billion and $1.3 billion raised, respectively. But it s not all about the newbies. BlackRock, following the acquisition of First Reserve, leapt an impressive 19 places to land at number six with $11.2 billion raised. And French outfit Antin Infrastructure Partners climbed 14 places to number 10, with $7.4 billion. There are many other such stories in the II 50. But the bigger picture, continuing from last year, is one of enduring strength, with more money being raised than ever. With the holiday season not far off, that s not a bad Christmas gift for the asset class. n MACQUARIE INFRASTRUCTURE AND REAL ASSETS $36, BROOKFIELD ASSET MANAGEMENT $29, GLOBAL INFRASTRUCTURE PARTNERS $26,792.21

3 Valuing the art of partnership. Playing as a team. For more than two decades, MIRA has set the stage investing in the infrastructure assets that people value and use every day. We know that successful long-term investment demands commitment and experience behind the scenes to create enduring value. Today, in partnership with our valued investors, we are also growing and channelling our knowledge and expertise beyond infrastructure into the changing worlds of energy, real estate and agriculture. Because one of the many things we have learned over the years is that complexity and change create opportunity for those with the skills to navigate the landscape. Our storyline remains the same. Our teams of financial and operational experts continue to source attractive opportunities and drive value. We thank our valued clients, partners and people across the world for your ongoing support and commitment. Macquarie Infrastructure and Real Assets (MIRA). mirafunds.com This information is a general description of the Macquarie Infrastructure and Real Assets (MIRA) division of the Macquarie Group only. Before acting on any information, you should consider the appropriateness of it having regard to your particular objectives, financial situation and needs and seek advice. No information set out above constitutes advice, an advertisement, an invitation, an offer or a solicitation, to buy or sell any financial product or security or to engage in any investment activity, or an offer of any banking or financial service. None of the entities noted on this page is an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). Their obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of those entities.

4 ROUNDTABLE II Rank 2016 Rank Position Company Country Region Fundraising ($m) 1 1 Unchanged Macquarie Infrastructure and Real Assets United Kingdom $36, Unchanged Brookfield Asset Management United States North America $29, Unchanged Global Infrastructure Partners United States North America $26, Up IFM Investors Australia Oceania $15, Up First State Investments Australia Oceania $13, Up BlackRock United States North America $11, New Debut EIG Global Energy Partners United States North America $10, Up Energy Capital Partners United States North America $8, Up KKR United States North America $8, Up Antin Infrastructure Partners France Up EQT Partners Sweden 12 7 Down ArcLight Capital Partners United States $7, $7, $6, Unchanged Stonepeak Infrastructure Partners United States North America $6, Down KDB Infrastructure Investments Asset Management Company South Korea East Asia $6, Up I Squared Capital United States North America $6, Down AMP Capital Australia Oceania $5, Down InfraRed Capital Partners United Kingdom Unchanged Partners Group Switzerland Up Hermes Infrastructure United Kingdom $5, $5, $5, Down Hastings Funds Management Australia Oceania $5, Down Ardian France Up Meridiam Infrastructure France Up Actis United Kingdom Down Copenhagen Infrastructure Partners* Denmark Up DIF Netherlands * Last year, we incorrectly counted CIP s debt investments into the total. This year, we are only counting equity, hence the drop in position. $5, $5, $4, $3, $3, INFRASTRUCTURE INVESTOR NOVEMBER 2017

5 II Rank 2016 Rank Position Company Country Region Fundraising ($m) 26 New Debut Ping An Asset Management Co. China East Asia $3, Down Dalmore Capital United Kingdom $3, Down Morgan Stanley Infrastructure United States North America $3, Up QIC Limited Australia Oceania $3, Down Equis Funds Group Malaysia Southeast Asia $3, Down Ridgewood Energy Corp. United States North America $3, Up Equitix Investment Management United Kingdom Up icon Infrastructure United Kingdom $3, $2, Down Axium Infrastructure Inc. Canada North America $2, Up LS Power Group United States North America $2, Up Goldman Sachs Infrastructure Investment Group Unchanged Infracapital United Kingdom United States North America $2, $2, New Debut Oaktree Capital Management United States North America $2, Down The Carlyle Group United States North America $2, Up Arcus Infrastructure Partners United States North America $2, New Debut China Communication Construction Company China East Asia $2, Up Northleaf Capital Partners Canada North America $2, Up InfraVia Capital Partners France $2, New Debut Harbert Management Corporation United States North America $1, Down American Infrastructure Funds United States North America $1, Down BTG Pactual Brazil Latin America $1, Up Sunvision Capital China East Asia $1, Up Starwood Energy Group Global United States North America $1, New Debut Green Investment Group United Kingdom 50 New Debut Mirova Environment and Infrastructure France $1, $1, NOVEMBER 2017 INFRASTRUCTURE INVESTOR 21

6 ROUNDTABLE II 50 II 50 Fundraising by firm ($m) BLACKROCK $11, EIG $10, ENERGY CAPITAL PARTNERS $8, BROOKFIELD $29, MORGAN STANLEY $3, RIDGEWOOD $3, KKR $8, STONEPEAK $6, AXIUM $2, OAKTREE $2, CARLYLE $2, LS POWER GROUP $2, ARCUS $2, AMERICAN INFRA FUNDS $1, GLOBAL INFRASTRUCTURE PARTNERS $26, ARCLIGHT $6, I SQUARED CAPITAL $6, GOLDMAN SACHS $2, NORTHLEAF CAPITAL $2, STARWOOD $1, IFM INVESTORS $15, MACQUARIE INFRASTRUCTURE AND REAL ASSETS $36, FIRST STATE INVESTMENTS $13, ANTIN $7, PARTNERS GROUP $5, HERMES $5, ARDIAN $5, EQT PARTNERS $7, INFRARED $5, MERIDIAM $5, ACTIS $4, COPENHAGEN INFRA PARTNERS $3, EQUITIX $3, ICON $2, DIF $3, INFRACAPITAL $2, INFRAVIA $2, DALMORE CAPITAL $3, HARBERT $1, GIG $1, MIROVA $1, KDB INFRASTRUCTURE $6, HASTINGS $5, PING AN ASSET MANAGEMENT $3, BTG PACTUAL $1, AMP CAPITAL $5, QIC $3, CCCC $2, EQUIS $3, SUNVISION $1, North America Asia-Pacific Latin America 22 INFRASTRUCTURE INVESTOR NOVEMBER 2017

7 A LEADER IN Infrastructure Investing Brookfield is a leading global infrastructure manager, with a history of more than 100 years of investing in real assets across market cycles, using our established value-based approach and deep experience as owners and operators of high-quality assets. Our $70 billion of infrastructure assets across five continents are overseen and actively managed by approximately 200 dedicated professionals and 30,000 operating employees.

8 ROUNDTABLE II 50 The 2017 Infrastructure Investor 50: Rules and definitions WHAT IS THE INFRASTRUCTURE INVESTOR 50 AND HOW DO WE DETERMINE THE RANKINGS? The Infrastructure Investor 50 ranks fund managers by the amount of capital raised by infrastructure direct investment programmes over five years. This year, the five-year window spans from 1 January 2012 until 31 August Where two firms have formed the same amount of capital over this time period, the higher Infrastructure Investor 50 rank goes to the firm with the largest active pool of capital formed since If there is still a tie after taking into account size of single capital formation, we give greater weight to the firm that has formed the most capital within the past one or two years. ACCURACY AND CONFIDENTIALITY We give highest priority to information that we receive from the fund managers themselves. When the infrastructure fund managers confirm details, we seek to trust, but verify. Some details simply cannot be verified by us, and in these cases we defer to the honour system. In order to encourage cooperation from the industry, we do not disclose which firms have aided us on background and which have not. Lacking confirmation of details from the firms themselves, we seek to corroborate information using available annual reports, press releases, limited partner disclosures, etc. DEFINITIONS Infrastructure: The definition of infrastructure investing, for the purposes of the Infrastructure Investor 50, means committing equity capital toward tangible, physical assets, whether existing (brownfield) or development-phase (greenfield) that are expected to exhibit stable, predictable cashflows over a long-term investment horizon. The investors need not seek to own the assets in perpetuity and may exit them, realising a capital gain and generating an internal rate of return for themselves or their end-investors. However, they must primarily dedicate their investment programmes toward the pursuit of assets and projects that exhibit cashflow stability and predictability and cannot be counted if they ve made large one-off investments in the asset class on an opportunistic basis. There will certainly be grey areas regarding these parameters, but Infrastructure Investor will make every effort to ensure that the capital counted for the purposes of the ranking will fall within our definition of infrastructure to the furthest extent possible. Below is an extract from our definition of infrastructure : Infrastructure is the term that covers the man-made facilities that enable any economy to operate. It can be segmented further into three broad types: transportation (e.g., railways, roads and airports), utilities (e.g., energy generation and distribution, water and waste processing and telecommunications) and social infrastructure (e.g., schools, hospitals and state housing) You will see that the emphasis is on the assets themselves rather than on associated services and technology. In our five-year total, only capital allocated to infrastructure is included, as defined above. Where the investments are made in what may be termed a grey area between infrastructure and private equity, we reserve the right to make the final judgment based on applicability according to our definition. Capital raised: This means capital definitively committed to an infrastructure direct investment programme. In the case of a fundraising, it means the fund has had a final or official interim close after 1 January You may count the full amount of a fund if it has a close after this date. And you may count the full amount of an interim close (a real one, not a softcircle ) that has occurred recently, even if no official announcement has been made. We also count capital raised through other means, such as co-investment vehicles and deal-by-deal co-investment capital. WHAT COUNTS AS CAPITAL RAISED Limited partnerships: In most cases, infrastructure fund managers raise money through commitments to limited partnerships. Investment capital can be raised in other ways for example through contributions from an affiliated entity in which case we seek to accurately determine how much investment capital has been created for the financial sponsor in question over the specified five-year period. Co-investment vehicles: Where appropriate, we count LP co-investment vehicles into a fund manager s capital fundraising total. The reason is that the co-investment vehicles reflect a fund manager s deal-making prowess and represent direct investment capital created for the asset class. However, the co-investment capital must be invested alongside a primary limited partnership, not established for a one-off deal or separate account. Public entities: We count the capital raised by infrastructure fund managers that happen to be publicly traded. Seed capital or GP commitment: You may count as capital raised any seed capital committed to any fund raised by your firm. Affiliated programmes: You may count infrastructure capital raised by affiliated entities so long as your firm has control over those entities, or the vehicles raised bear the clear branding of your firm. 24 INFRASTRUCTURE INVESTOR NOVEMBER 2017

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10 ROUNDTABLE II 50 II 50 Fundraising by headquarters location ($m) Canada 34,990 United Kingdom 67,612 France 21,095 Sweden 7,120 Denmark 3,880 The Netherlands 3,863 Switzerland 5,654 South Korea 6,745 United States 109,388 China 5,345 Brazil Singapore 1,679 Australia 3,229 43,606 Source: Infrastructure Investor The 2017 Infrastructure Investor 50: Rules and definitions continued WHAT DOES NOT COUNT AS INFRASTRUCTURE Funds of funds: We do not count funds of funds in our rankings. Credit for capital raised by funds of funds is reflected in fund managers direct capital raised, so to avoid double-counting, we exclude funds of funds. Separate accounts: An asset manager cannot claim credit for a separate pool of capital being managed on behalf of a pension plan as it is not a blind pool of capital originated for private investment at the discretion of the manager. Real asset strategies: Real assets such as timber, commodities, and natural resources cannot be counted toward the capital-created total. While such strategies are like infrastructure in that they provide an investment in a physical, tangible asset or contain an element of inflation protection, they do not meet the core criteria of providing exposure to stable, predictable, long-term cashflow streams (timber demand, for example, is cyclical, as are commodities and natural resource-driven strategies such as oil and gas exploration). Real estate: We do not count capital deployed in property ownership strategies. Club deals: Similar to our rationale for separately managed accounts, in which capital is pledged to a sponsor but the end-investors have the discretion over whether to invest, we do not count club deals in our rankings. Debt investment funds: Our rankings focus on equity committed to the asset class, so we exclude all debt-focused vehicles and commitments, including mezzanine debt. Private equity: We do not count capital deployed primarily in private equity strategies (i.e. buyouts of operating businesses in various economic sectors). Infrastructure investors may, of course, invest in operating businesses, but the businesses must exhibit and be purchased primarily for their ability to produce stable, long-term cashflows. Hedge funds: We do not count hedge fund strategies as these primarily rely on indirect investments such as listed securities that may have exposure to infrastructure assets, not the assets themselves. WHAT DOES NOT COUNT AS CAPITAL RAISED: Expected capital commitments: No matter how confident you are about your eventual fundraising goals, we do not count soft- or hard-circled commitments only official final and interim closes. Opportunistic capital: An entity that has the ability to opportunistically do large infrastructure deals, but does not have a dedicated programme or team for doing so, will not be counted. n MORE QUESTIONS? Contact Daniel Humphrey Rodriguez daniel.r@peimedia.com INFRASTRUCTURE INVESTOR NOVEMBER 2017

11 We create value in private infrastructure by combining strategic vision with industry expertise. Partners Group has been realizing the potential of private markets investments for two decades. Our strategy is to seek out and invest in essential infrastructure with development potential on behalf of our clients, all around the world. We do this by combining significant local sourcing capabilities with deep sector expertise and a leading value creation practice. Our more than 1,000 professionals in 19 offices around the globe manage USD 66 billion of private markets assets on behalf of over 900 institutional clients worldwide. Private Equity Private Real Estate Private Infrastructure Private Debt