The Q1 2 Preqin Quarterly Update Insight on the quarter from the leading provider of alternative assets data Content includes... Fundraising Difficult quarter for unlisted infrastructure fundraising. Funds in Market A crowded and competitive market. Investors in Investors are becoming increasingly sophisticated. Deals Europe dominated the infrastructure deals market in Q1. AUM and Dry Powder Assets under management reach all-time high. alternative assets. intelligent data.
The Preqin Quarterly Update:, Q1 2 Download the data pack at: Foreword - Andrew Moylan, Preqin Unlisted infrastructure fundraising in Q1 2 was slow, with just four funds closing on a combined $5.3bn. This represents the fourth consecutive quarter in which the total capital raised by funds reaching a final close has declined, suggesting an increasingly tough fundraising landscape. However, those managers which are able to achieve a final close are often attracting large amounts of capital. The average size of infrastructure funds has grown steadily in recent years, and stands at $1.3bn for funds closed in 2 to date, as capital is increasingly concentrated among more experienced managers. The competitive nature of the current market is further demonstrated by looking at the large number of managers seeking capital, with a total of 146 funds in market targeting aggregate commitments of $97bn. When considering the fact that 45% of funds on the road have already been in market for two years or more, it is evident that many fund managers are finding it tough to secure institutional capital. As of September 214, uncalled capital commitments (dry powder) stood at an all-time high of $11bn, demonstrating the considerable capital reserves that fund managers have available. However, with concerns over asset pricing, the number of deals being completed has declined for consecutive quarters, and it seems many are finding it harder to identify attractive opportunities in a competitive landscape. Nonetheless, institutional investors remain committed to the asset class, with 64% of investors which plan to invest in infrastructure in the next 12 months intending to invest more than $1mn, and the vast majority (87%) of investors planning to invest in multiple funds. Preqin s Online is an indispensable tool for all firms looking to market funds, develop new business, find new partners or conduct market analysis in the coming months. Behind every data point in this report is a wealth of individual firm, fund transaction and asset-level data available on Preqin s leading online services. We hope you find this report useful, and welcome any feedback you may have. For more information, please visit www.preqin.com or contact info@preqin.com. Interested in Accessing Free Alternative Assets Data and Research Tools? Covering infrastructure, private equity, hedge funds, real estate and private debt, Preqin s Research Center Premium is a free online service providing access to up-to-date charts and league tables, research reports and newsletters, fund performance benchmarking tools and slide decks from recent Preqin presentations at conferences. For more information, please visit: www.preqin.com/rcp Contents Fundraising in Q1 2 3 Funds in Market 6 Institutional Investors in 7 Deals 8 Assets under Management and Dry Powder 9 Fund Performance 1 Secondaries 11 All rights reserved. The entire contents of Preqin Quarterly Update:, Q1 2 are the Copyright of Preqin Ltd. No part of this publication or any information contained in it may be copied, transmitted by any electronic means, or stored in any electronic or other data storage medium, or printed or published in any document, report or publication, without the express prior written approval of Preqin Ltd. The information presented in Preqin Quarterly Update:, Q1 2 is for information purposes only and does not constitute and should not be construed as a solicitation or other offer, or recommendation to acquire or dispose of any investment or to engage in any other transaction, or as advice of any nature whatsoever. If the reader seeks advice rather than information then he should seek an independent fi nancial advisor and hereby agrees that he will not hold Preqin Ltd. responsible in law or equity for any decisions of whatever nature the reader makes or refrains from making following its use of Preqin Quarterly Update:, Q1 2. While reasonable efforts have been made to obtain information from sources that are believed to be accurate, and to confi rm the accuracy of such information wherever possible, Preqin Ltd. does not make any representation or warranty that the information or opinions contained in Preqin Quarterly Update:, Q1 2 are accurate, reliable, up-to-date or complete. Although every reasonable effort has been made to ensure the accuracy of this publication Preqin Ltd. does not accept any responsibility for any errors or omissions within Preqin Quarterly Update:, Q1 2 or for any expense or other loss alleged to have arisen in any way with a reader s use of this publication. 2 2 Preqin Ltd. / www.preqin.com
Download the data pack at: The Preqin Quarterly Update:, Q1 2 Fundraising in Q1 2 Fundraising for unlisted infrastructure funds declined in Q1 2, with just four funds closing, raising an aggregate $5.3bn in institutional capital (Fig. 1). This represents the lowest amount of capital raised in a single quarter since Q3 213, when $4.8bn was raised. However, those fund managers that are closing funds are often raising large amounts of capital, with Fig. 2 revealing that the average fund size has increased from $53mn for funds closed in 211 to $984mn in 214. This trend is further revealed in Fig. 3, which shows that since 21, managers have been increasingly meeting or exceeding their fundraising targets. Having dropped to a record low of 84% for funds closed in 29 and 21, the proportion of target size achieved by unlisted funds grew to 96% in 213 and 16% in 214. As a result, despite fewer funds reaching a fi nal close and the aggregate capital raised declining for the last four consecutive quarters, fund managers that do reach a fi nal close are increasingly able to reach or exceed their target size, as investors look to invest their capital with the handful of more experienced infrastructure fund managers. However, the length of time spent fundraising prior to reaching a fi nal close is on the rise, with Fig. 4 revealing that from 28 to 214, the average time spent on the road has increased from months to 23 months, refl ecting the tough fundraising market and the challenges managers face closing funds. The largest unlisted infrastructure fund to close in the last 12 months is Energy Capital Partners Energy Capital Partners III, which targets investments in North American energy infrastructure, including power generation, renewables, electric transmission and midstream gas sectors. The largest unlisted infrastructure fund to close in Q1 2 was the 2bn First State European Diversifi ed Fund, which principally Key Facts $5.3bn Amount of capital raised by just four funds reaching a final close in Q1 2. 2bn Amount secured by the largest fund closed in Q1 2. Number 4 of consecutive quarters of decline in the amount of aggregate capital raised at final closes. 23 Average number of months spent on the road by funds closed in 214. Fig. 1: Global Quarterly Unlisted Fundraising, Q1 21 - Q1 2 Fig. 2: Average Size of Unlisted Funds, 28 - Q1 2 35 3 27 31 1,4 1,2 1,314 25 2 1 5 21 9 1 11 9 9 7 7.9 8 7.6 6 5 5.7 4 4 1.6.7 1.7 3.3 2.6 1.6 2 19.8 13 13 12.5 9.4 4.8 23 18 14.7 14 13 1.9 9 8 7.4 5.3 4 No. of Funds Closed Aggregate Capital Raised ($bn) Average Fund Size ($mn) 1, 8 6 4 2 733 393 682 53 555 679 984 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 21 211 212 213 214 2 28 29 21 211 212 213 214 Q1 2 Date of Final Close Date of Final Close 2 Preqin Ltd. / www.preqin.com 3
The Preqin Quarterly Update:, Q1 2 Download the data pack at: targets investments in mature, European economic infrastructure assets. This was followed by P2Brasil III, which secured $1.6bn in investor capital. Equis Funds Group closed two funds in Q1, raising $1bn for Equis Asia Fund II, which invests in core Asian infrastructure assets, with a particular focus on the energy sector in China, Indonesia, Malaysia, Philippines, Thailand and Vietnam, and $3mn for Equis Direct Investment Fund, which will allocate further capital to the portfolio held by Equis Asia Fund I. Data Source: Preqin s Online contains detailed information on all aspects of the fundraising market, with extensive profi les for all 146 funds currently being marketed and over 55 closed historically. For more information, please visit: www.preqin.com/infrastructure Fig. 3: Average Proportion of Target Size Achieved by Unlisted Funds, 28-214 Fig. 4: Average Time Spent in Market by Unlisted Funds, 28-214 Average Proportion of Target Size Achieved 1% 8% 6% 4% 2% % 16% 92% 94% 93% 96% 84% 84% 28 29 21 211 212 213 214 Average Time Spent in Market (Months) 25 2 1 5 24 22 23 19 2 18 28 29 21 211 212 213 214 Year of Final Close Year of Final Close Fig. 5: Unlisted Funds Closed in Q1 2 Fund Firm Fund Size (mn) Location Focus First State European Diversifi ed Fund Colonial First State Global Asset Management/First State Investments 2, EUR Europe P2 Brasil III P2Brasil 1,6 USD South America Equis Asia Fund II Equis Funds Group 1, USD Asia Equis Direct Investment Fund Equis Funds Group 3 USD Asia Fig. 6: 1 Largest Unlisted Funds Closed, 214 - Q1 2 Fund Firm Fund Size (mn) Location Focus Energy Capital Partners III Energy Capital Partners 5,95 USD North America Energy & Minerals Group Fund III Energy & Minerals Group 4,81 USD Global EnCap Flatrock Midstream Fund III EnCap Flatrock Midstream 3, USD US Macquarie Partners III Macquarie and Real Assets (MIRA) 3, USD North America, Mexico Antin Fund II Antin Partners 2, EUR Europe First Reserve Energy Fund II First Reserve Corporation 2,5 USD First State European Diversifi ed Fund Colonial First State Global Asset Management/First State Investments North America, West Europe 2, EUR Europe LS Power Equity Partners III LS Power Group 2,75 USD US Infracapital Partners II Infracapital 1,3 GBP Europe P2 Brasil III P2Brasil 1,6 USD South America 4 2 Preqin Ltd. / www.preqin.com
Global private equity fundraising Capstone Partners (www.csplp.com) is a leading independent placement agent focused on raising capital for private equity, credit, real assets and infrastructure firms. The Capstone team includes 25 experienced professionals in North America, Europe and Asia. Tailwater Capital We congratulate the Tailwater team on the successful closing of Tailwater Energy Fund II LP www.csplp.com Americas Europe Middle East Asia Pacific Securities placed through CSP Securities, LP Member FINRA/SIPC Authorised by FINMA
The Preqin Quarterly Update:, Q1 2 Download the data pack at: Funds in Market As of the start of Q2 2, there are 146 unlisted infrastructure funds in market, seeking an aggregate $97bn in investor capital (Fig. 1). The number and combined target of funds being marketed has increased compared to the start of the year, resulting in an increasingly crowded and competitive fundraising market, especially when considering that just four funds reached a fi nal close in Q1 2. Additionally, many funds in market have already been fundraising for a considerable length of time, with Fig. 2 showing that the majority (7%) have been fundraising for more than a year, and 45% having been in market for over two years. When considering that 55% of funds on the road have not yet held an interim close, it is evident that many fund managers raising these vehicles may struggle to gain suffi cient fundraising momentum to achieve a fi nal close. Fig. 1: Unlisted Funds in Market over Time, January 21 - April 2 16 14 12 1 8 6 4 17 9 144 93 137 85 145 97 136 86 146 97 No. of Funds Raising Aggregate Target Capital ($bn) Regionally, 51 funds in market are targeting European infrastructure assets, with these funds seeking an aggregate $32bn in capital. However, North America-focused funds are targeting slightly more capital, $34bn, despite there being fewer funds targeting the region. The largest fund in market is Alinda Fund III, targeting $5bn in institutional capital (Fig. 4). Other sizeable funds include Arclight Energy Partners Fund VI, Morgan Stanley Partners II and Pan-European Fund II, which are targeting $4bn, $4bn and 2bn respectively. 2 Jan-1 Jan-11 Jan-12 Jan-13 Jan-14 Apr- Fig. 2: Breakdown of Unlisted Funds in Market by Time Spent in Market 3% Fig. 3: Breakdown of Unlisted Funds in Market by Primary Geographic Focus 6 Proportion of Funds in Market 25% 2% % 1% 5% 14% 18% 25% 24% 21% 5 4 3 2 1 31 34 51 32 18 1 46 22 No. of Funds Raising Aggregate Target Capital ($bn) % Less than 6 Months 6-12 Months 13-24 Months 25-36 Months More than 36 Months North America Europe Asia Rest of World Time Spent in Market Primary Geographic Focus Fig. 4: Five Largest Unlisted Funds Currently in Market Fund Firm Target Size (mn) Location Focus Firm Headquarters Alinda Fund III Alinda Capital Partners 5, USD North America, Europe US ArcLight Energy Partners Fund VI ArcLight Capital Partners 4, USD North America, West Europe US Morgan Stanley Partners II Morgan Stanley 4, USD Global US Ardian Generation IV Ardian 2, EUR West Europe France Pan-European Fund II Deutsche Asset & Wealth Management 2, EUR Europe UK 6 2 Preqin Ltd. / www.preqin.com
Download the data pack at: The Preqin Quarterly Update:, Q1 2 Institutional Investors in investors predominantly favour domestic investment when considering which regions to commit capital to in the next 12 months, as shown in Fig. 1. However, many investors also target geographically diversified investments; this is particularly notable for North America-based institutions, with 67% of these investors targeting global infrastructure investments in the year ahead. As the infrastructure asset class becomes more widely targeted by institutions, many investors are carving out separate infrastructure Fig. 1: Regions Targeted by Investors in the Next 12 Months by Investor Location allocations, as opposed to targeting the asset class through other allocations such as private equity or real assets buckets; Fig. 2 shows that 38% of investors have a separate infrastructure allocation. Regarding the amount of capital and the number of funds investors plan to invest in over the next 12 months, Fig. 3 and Fig. 4 reveal that a considerable 64% of investors plan to invest more than $1mn, and the vast majority (87%) of investors plan to invest in multiple funds. Fig. 2: Breakdown of Investors by Source of Allocation 8% 45% Proportion of Investors 7% 6% 5% 4% 3% 2% 1% % 69% 67% 25% 69% 45% 17% 11% 11% 1% 1% North America- Based Investors Europe-Based Investors 58% 35% 31% 4% 42% Asia-Based Investors Region Targeted: North America Europe Asia Rest of World Global Proportion of Investors 4% 35% 3% 25% 2% % 1% 5% % 38% 24% Separate Part of Private Equity Allocation Allocation 19% Part of Real Assets Allocation Source of Allocation 13% General Alternatives Allocation 6% Other Fig. 3: Amount of Capital Investors Plan to Commit to Funds in the Next 12 Months Fig. 4: Number of Funds Investors Plan to Commit to in the Next 12 Months 16% 16% 13% 36% Less than $1mn $1-499mn 1 Fund 2-3 Funds $5mn or More 34% 4-9 Funds 37% 1 Funds or More 48% Fig. 5: Sample of Investors Targeting Funds in the Next 12 Months Investor Type Location Investment Plans for the Next 12 Months KB Kookmin Bank WorkCover Corporation of South Australia Barmenia Bank Insurance Company Insurance Company South Korea Australia Germany It plans to invest in infrastructure via direct investments in the next 12 months but may also invest in unlisted funds. It will focus on making domestic debt investments. It will make one new private infrastructure fund commitment in the next 12 months, investing AUD 8mn. It has a global outlook on infrastructure. It expects to pursue further investments in infrastructure over the coming 12 months, in order to move towards its target allocation of 2%. 2 Preqin Ltd. / www.preqin.com 7
The Preqin Quarterly Update:, Q1 2 Download the data pack at: Deals In Q1 2, 125 infrastructure deals were completed with an estimated aggregate deal value of $bn (Fig. 1), though it is likely that these fi gures will rise once more data is reported by investors. Europe dominated the infrastructure deals market in Q1, with 54 completed deals taking place within this region, at a reported aggregate deal value of $24bn. Forty deals were completed in North America at an aggregate value of $12bn. Notable transactions completed during this period included the purchase of Fortum Distribution AB, acquired by a consortium consisting of OMERS, AP-Fonden 3, Första AP-Fonden and Folksam, for 6.6bn. Other signifi cant deals include IFM Global Fund s $5.7bn purchase of Indiana Toll Road from Macquarie and Real Assets (MIRA) and Cintra, and Cheung Kong Holdings 2.5bn acquisition of Eversholt Rail Group, a rolling stock company based in the UK. Fig. 1: Quarterly Number and Aggregate Value of Deals Completed Globally, Q1 212 - Q1 2 No. of Deals 35 3 25 2 1 5 316 316 274 268 231 242 225 28 218 27 187 188 Q1 212 Q2 212 Q3 212 Q4 212 Q1 213 Q2 213 Q3 213 Q4 213 Q1 214 Q2 214 Q3 214 No. of Deals Reported Aggregate Deal Value ($bn) Estimated Aggregate Deal Value ($bn) Q4 214 125 Q1 2 3 25 2 1 5 Aggregate Deal Value ($bn) Fig. 2: Breakdown of Deals in Q1 2 by Region Fig. 3: Breakdown of Deals in Q1 2 by Industry No. of Deals 6 5 4 3 2 1 54 Europe 4 North America Asia 7 Australasia 5 4 South America Africa 3 25 2 1 5 Aggregate Deal Value ($bn) No. of Deals 45 4 35 3 25 2 1 5 42 Renewable Energy 32 Transport 2 Social 14 Energy (Other) 7 Utilities 1 Other 25 2 1 5 Aggregate Deal Value ($bn) No. of Deals Reported Aggregate Deal Value ($bn) No. of Deals Reported Aggregate Deal Value ($bn) Fig. 4: Five Notable Deals Completed in Q1 2 Asset Location Industry Investor(s) Fortum Distribution AB Finland Power Distribution AP-Fonden 1, AP-Fonden 3, OMERS, Folksam Total Deal Size (mn) Stake (%) Transaction Date 6,6 EUR 1 Mar- Indiana Toll Road US Toll Roads IFM Investors 5,725 USD 1 Mar- Eversholt Rail Group UK Rolling Stock NorthConnex Australia Toll Roads Liberty Living UK Student Accommodation Cheung Kong Holdings CPP Investment Board, QIC, Transurban Group 2,5 GBP 1 Jan- 2,9 AUD 1 Feb- CPP Investment Board 2,1 USD 1 Mar- 8 2 Preqin Ltd. / www.preqin.com
Download the data pack at: The Preqin Quarterly Update:, Q1 2 Assets under Management and Dry Powder The combined assets under management (AUM) of unlisted infrastructure funds continues to grow, and stood at an alltime high of $293bn as of September 214, with uncalled capital commitments (dry powder) amounting to $11bn and the unrealized value of assets representing a further $192bn (Fig. 1). Regionally, North America-focused funds accounted for the largest proportion (49%) of industry AUM, as shown in Fig. 2, with a considerable $51bn in unrealized value of assets and $91bn in dry powder. Europe-focused funds have AUM of $92bn as of September 214, with Asia-focused funds and funds focused on other regions accounting for $32bn and $27bn of AUM respectively. As of March 2, global unlisted infrastructure dry powder stands at $19bn, with Fig. 3 demonstrating an increase in the dry powder available to invest in all regions during Q1 2. Since December 213, a greater proportion of global dry powder is accounted for by mega funds (those with a value of $2bn or more), increasing from 39% in December 213 to 49% in March 2, as a result of many of the largest managers closing sizeable funds in recent quarters. Fig. 1: Unlisted Assets under Management, December 27 - September 214 35 Fig. 2: Unlisted Assets under Management by Fund Primary Geographic Focus (As of September 214) 16 Assets under Management ($bn) 3 25 2 1 5 92 33 49 6 65 67 65 7 Dec-7 Dec-8 Dec-9 Dec-1 192 171 127 149 9 83 92 11 Dec-11 Dec-12 Dec-13 Sep-14 Unrealized Value ($bn) Dry Powder ($bn) Assets under Management ($bn) 14 12 1 8 6 4 2 92 51 North America 6 31 21 2 11 7 Europe Asia Rest of World Fund Primary Geographic Focus Unrealized Value ($bn) Dry Powder ($bn) Fig. 3: Unlisted Dry Powder by Fund Primary Geographic Focus, December 27 - March 2 Fig. 4: Breakdown of Unlisted Dry Powder by Fund Size, December 27 - March 2 Dry Powder ($bn) 6 5 4 3 2 1 North America Europe Asia Rest of World Proportion of Total Dry Powder 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% 1% 11% % 18% % 16% 22% 21% 7% 1% 13% 11% % % 22% 22% 16% % 23% 24% 2% 25% 2% 24% 24% 59% 58% 52% 5% 5% 45% 49% 38% 39% Small Funds: Less than $5mn Medium Funds: $5-999mn Large Funds: $1-1.9bn Mega Funds: $2bn or More % Dec-7 Dec-8 Dec-9 Dec-1 Dec-11 Dec-12 Dec-13 Dec-14 Mar- Dec-7 Dec-8 Dec-9 Dec-1 Dec-11 Dec-12 Dec-13 Dec-14 Mar- 2 Preqin Ltd. / www.preqin.com 9
The Preqin Quarterly Update:, Q1 2 Download the data pack at: Fund Performance funds are typically characterized by lower and more stable rates of return than private equity strategies, with the median net IRR of infrastructure funds standing at just over 1% for recent vintage years (Fig. 1). However, Fig. 2 shows that infrastructure funds of vintage years 2-25 have outperformed many other private equity strategies, with a median net IRR of 18.% compared to.7% for buyout funds. While 27 to 21 vintage infrastructure offerings have generated lower IRRs than other strategies, the 211 vintage median exceeds that of buyout and venture capital. Further strong performance of the infrastructure asset class since the onset of the global fi nancial crisis is revealed in Fig. 5, which shows that the PrEQIn Index (rebased to 1 as of December 27) stands at 163.6 as of September 214, compared to 144.3 for the PrEQIn All Private Equity Index. Fig. 1: Median, Maximum and Minimum Net IRRs for Unlisted Funds by Vintage Year Net IRR since Inception 6% 5% 4% 3% 2% 1% % -1% -2% -3% -4% 1992-1999 2-25 26 27 28 29 21 211 212 Minimum IRR Median IRR Maximum IRR Vintage Year Fig. 2: Median Net IRR by Vintage Year: vs. Other Private Equity Strategies Fig. 3: Unlisted Funds: Median Called-up, Distributions and Residual Value Ratios by Vintage Year 2% 2% Median Net IRR since Inception 18% 16% 14% 1% 8% 6% 4% 2% % Real Estate Buyout Venture Capital 18% 16% 14% 1% 8% 6% 4% 2% % Residual Value to Paid-in Capital Distributed to Paid-in Capital Called-up to Committed Capital 1992-1999 2-25 26 27 28 29 21 211 212 1992-1999 2-25 26 27 28 29 21 211 212 213 214 Vintage Year Vintage Year Fig. 4: Median Net Multiples of Unlisted Funds by Vintage Year Fig. 5: PrEQIn Index: vs. All Private Equity Median Net Multiple (X) 2. 1.5 1..5. 1.83 1992-1999 1.71 2-25 1.31 26 1.14 1.24 1.25 1.26 1. 1.7 1. 27 28 29 21 211 212 213 Vintage Year.89 214 Index Returns (Rebased to 1 as of 31-Dec-7) 18 16 14 12 1 8 6 4 2 31-Dec-7 3-Jun-8 31-Dec-8 3-Jun-9 31-Dec-9 3-Jun-1 31-Dec-1 3-Jun-11 31-Dec-11 3-Jun-12 31-Dec-12 3-Jun-13 31-Dec-13 3-Jun-14 PrEQIn All Private Equity PrEQIn 1 2 Preqin Ltd. / www.preqin.com
Download the data pack at: The Preqin Quarterly Update:, Q1 2 Secondaries The infrastructure secondary market remains a very small segment of the overall infrastructure investment universe, but as the asset class develops, the need for liquidity is likely to increase and the secondary market is likely to grow. While only % of managers of secondaries funds surveyed by Preqin acquired infrastructure funds stakes in 214, signifi cantly lower than the proportion that targeted corporate private equity fund types, it is interesting to note that a greater proportion gained exposure to infrastructure than real estate or debt funds (Fig. 1). Fig. 2 shows a similar picture, with secondaries buyers more likely to be increasing their exposure to buyout or venture capital funds, with only a small proportion looking to grow their infrastructure exposure. Perhaps unsurprisingly, funds of funds and dedicated secondaries specialists make up the majority of fi rms buying fund stakes on the secondary market, but there is also a range Fig. 1: Breakdown of Funds Purchased on the Secondary Market by Managers of Secondaries Funds in 214 by Fund Type of fi rms acquiring fund interests, with pension funds and asset managers also active buyers (Fig. 3). Pension funds are the most active sellers, with public and private sector pension funds accounting for over a third (34%) of those fi rms considering the sale of fund stakes, as shown in Fig. 4. Data Source: Preqin s Secondary Market Monitor online service provides vital intelligence on all areas of the secondary market and is constantly updated by Preqin s team of dedicated analysts through direct contact with institutional investors and fund managers from around the world. For more information, please visit: www.preqin.com/smm Fig. 2: Managers of Secondaries Funds: Planned Level of Activity in 2 by Fund Type Buyout 65% Growth 44% Venture Capital 42% % Real Estate 13% Private Debt Mezzanine % 1% 2% 3% 4% 5% 6% 7% Proportion of Respondents 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 33% 29% 19% 1% 8% 8% 8% 65% 69% 78% 88% 9% 9% 9% 2% 2% 4% 2% 2% 2% 2% Buyout Growth Venture Capital Mezzanine Real Estate Private Debt Increase Exposure in 2 Compared to 214 Maintain Same Level of Exposure in 2 as in 214 Decrease Exposure in 2 Compared to 214 Proportion of Respondents Fund Type Source: Preqin Secondary Fund Manager Survey, February 2 Fig. 3: Breakdown of Potential Buyers of Funds on the Secondary Market by Type Source: Preqin Secondary Fund Manager Survey, February 2 Fig. 4: Breakdown of Potential Sellers of Funds on the Secondary Market by Type 5% 17% 24% Fund of Funds Managers Private Equity Fund of Funds Managers Secondary Fund of Funds Managers 8% 3% 3% 23% Public Pension Funds Private Sector Pension Funds Insurance Companies Asset Managers Foundations 14% 17% Public Pension Funds Private Sector Pension Funds Asset Managers Other 8% 8% 11% 13% Endowment Plans Private Equity Fund of Funds Managers Superannuation Schemes Banks Other Source: Preqin Secondary Market Monitor Source: Preqin Secondary Market Monitor 2 Preqin Ltd. / www.preqin.com 11
The Q1 2 Preqin Quarterly Update: alternative assets. intelligent data. Preqin Online If you want any further information, or would like a demo of our products, please contact us: With global coverage and detailed information on all aspects of the infrastructure asset class, Preqin s industry-leading Online service keeps you up-to-date on all the latest developments in the infrastructure universe. Source new investors for funds and co-investments Find the most relevant investors, with access to detailed profiles for over 2,4 institutional investors actively investing in unlisted infrastructure, including insurance companies, pension funds, family offices, foundations, wealth managers, endowments, banks and more. Identify potential investment opportunities View in-depth profiles for over 8 unlisted infrastructure funds encompassing all strategies, including greenfi eld, brownfi eld, secondary stage, cleantech and renewable energies, debt, mezzanine and fund of funds. Find active fund managers in infrastructure Search for firms actively targeting infrastructure projects and assets, with detailed profiles on over 4 fund managers from around the world, including background, key contacts and funds raised. Analyze the latest infrastructure fundraising activity See which funds are currently on the road raising an infrastructure fund and which will be coming to market soon. Analyze fundraising over time by fund strategy, industry focus and location. Benchmark performance Identify which fund managers have the best track records with performance benchmarks for infrastructure funds and view performance details for 18 individual named funds. Examine infrastructure investment trends Search detailed information on over 11,5 infrastructure transactions and bids historically, including asset location, project stage and industry. Identify key geographic regions and sectors that are attracting infrastructure investment. Find out how Preqin s range of products and services can help you: New York: One Grand Central Place 6 E 42nd Street Suite 63, New York NY 1165 Tel: +1 212 35 1 Fax: +1 44 445 9595 London: 3rd Floor Vintners Place 68 Upper Thames Street London EC4V 3BJ Tel: +44 ()2 327 2 Fax: +44 ()87 33 5892 Singapore: One Finlayson Green, #11-2 Singapore 49246 Tel: +65 635 22 Fax: +65 6491 5365 San Francisco: 17 Montgomery Street Suite 134, San Francisco CA 94111 Tel: +1 4 835 9455 Fax: +1 44 445 9595 Email: info@preqin.com Web: www.preqin.com www.preqin.com/infrastructure