preqin special report: european infrastructure...infrastructure funds closed this year have exceeded...

Content Includes:

Fundraising

All Europe-focused unlisted infrastructure funds closed this year have exceeded their target size.

Funds in Market

In a competitive market, 38% of Europe-focused funds have been on the road for more than 18 months.

AUM, Dry Powder and Performance

AUM of European unlisted infrastructure funds reaches all-time high at the end of 2014.

Institutional Investors

More than half of Europe-based investors are below their target allocation to infrastructure.

Deals

Average European infrastructure deal size has hit record heights.

Preqin Special Report: European Infrastructure

November 2015

alternative assets. intelligent data.

2 © 2015 Preqin Ltd. / www.preqin.com

Preqin Special Report: European InfrastructureDownload the data pack:www.preqin.com/EuropeINF155

All rights reserved. The entire contents of Preqin Special Report: European Infrastructure, November 2015 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 Special Report: European Infrastructure, November 2015 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 Special Report: European Infrastructure, November 2015.

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 warrantythat the information or opinions contained in Preqin Special Report: European Infrastructure, November 2015 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 Special Report: European Infrastructure, November 2015 or for any expense or other loss alleged to have arisen in any way with a reader’s use of this publication.

The infrastructure market in Europe remains one of the world’s largest, with the assets under management (AUM) of unlisted infrastructure funds standing at an all-time high of €80bn at the end of 2014. Additionally, unlisted fundraising focused on the region is on course to meet the high of €10.5bn raised in 2013, although much of this is down to the largest infrastructure fi rms securing ever increasing proportions of total capital raised. The average fund size of a Europe-focused unlisted infrastructure fund now stands at a new high of €945mn.

Europe-based institutional infrastructure investors represent an important source of capital for the asset class, possessing approximately €25tn in combined AUM. These investors’ contributions to the asset class look set to increase over the coming months; 58% of Europe-headquartered investors are currently below their target allocation to the asset class, demonstrating that there is a signifi cant pool of potential capital which is likely to fl ow into the asset class in the coming months.

There are a steady stream of new, investable projects and an abundance of existing, operational infrastructure assets in the region, providing many opportunities across the risk/return spectrum for fund managers and institutional investors. However, rising valuations for these assets have seen double the proportion of deals completed this year for over €1bn compared to last year, with the average size of an infrastructure deal completed in Europe surpassing €500mn.

Preqin Special Report: European Infrastructure takes a detailed look at the infrastructure industry in the region, including fundraising, active institutional investors, deals and performance. This report supplements the information available on Preqin’s Infrastructure Online service, which contains details on over 350 Europe-focused funds, 5,000 completed European transactions and 700 institutional investors active in the asset class. We hope you fi nd this report useful, and welcome any feedback you may have. For more information, please visit www.preqin.com or contact [email protected].

Contents

Overview of European Infrastructure 3

Fundraising 4

Funds in Market 6

Fund Managers 7

Assets under Management, Dry Powder and Performance 8

Institutional Investors 9

Deals 11

UK 13

West Europe (excl. UK) 14

Nordic, Central and Eastern Europe 15

Infrastructure Online

Preqin’s Infrastructure Online contains detailed information on all aspects of the infrastructure industry worldwide. Constantly updated by our team of dedicated research analysts, the service features in-depth data on fundraising, fund managers, institutional investors, deals, fund performance and much more.

For more information, please visit: www.preqin.com/infrastructure

Foreword

Preqin Special Report: European InfrastructureDownload the data pack:

www.preqin.com/EuropeINF15


wwwwwwwwwwwwwwwwwwww

Overview of European Infrastructure

Number of Completed European Infrastructure Deals by Country, 2010 - 2015 YTD (As at 15 October 2015)

UKUK1,0761,076

FranceFrance267267

GermanyGermany189189

ItalyItaly149149SpainSpain

127127

NetherlandsNetherlands8585

TurkeyTurkey6161

SwedenSweden5151

BelgiumBelgium4646

IrelandIreland4444

GreeceGreece4141

PolandPoland4141

NorwayNorway4040

DenmarkDenmark3939

RussiaRussia2525

FinlandFinland2222

PortugalPortugal1313

Czech Rep.Czech Rep.1111LuxembourgLuxembourg

88SwitzerlandSwitzerland

88HungaryHungary

77

AustriaAustria44 RomaniaRomania

44

SlovakiaSlovakia44

AzerbaijanAzerbaijan33

CroatiaCroatia33

GeorgiaGeorgia33

BulgariaBulgaria11

LithuaniaLithuania11

UkraineUkraine11

JerseyJersey11

European Fundraising European Infrastructure Investors European Infrastructure Deals

Average Europe-focused unlisted infrastructure fund size in 2015 YTD – an all-time high.

Aggregate assets under management of Europe-based infrastructure investors.

Rise in average deal value since 2014 to €519mn – an all-time high.

All Europe-focused unlisted infrastructure funds closed this year have exceeded their initial target size.

Proportion of Europe-headquartered infrastructure investors based in the UK.

Value of the largest completed European deal since 2008, the partnership to construct Hinkley Point C Nuclear Power Station.

Proportion of all funds closed this year that are primarily Europe focused.

Proportion of Europe-based infrastructure investors that are below their target allocation to the asset class.

Proportion of European deals completed in the renewable energy sector since 2010, the largest of any industry.

$945mn$945mn

100%100%

32%32%

33%33%

58%58%

58%58%

£18bn£18bn

44%44%

€25tn€25tn



Fundraising

Europe-focused unlisted infrastructure fundraising has remained steady over the last two years, and this year looks set to meet, if not surpass, the high of €10.5bn seen in 2013 (Fig. 1). The €9.4bn raised in aggregate capital commitments in 2015 YTD has come from just 12 unlisted funds – less than half of the number of funds closed in either 2012 and 2013. Europe-focused funds account for 32% of all infrastructure vehicles to have held a fi nal close so far this year, a slight increase on the 30% witnessed in the whole of 2014.

Due to the increased concentration of capital among fewer infrastructure fi rms, the average fund size has reached an all-time high of €945mn (Fig. 2). While fewer, larger funds are closing, these vehicles are generally more successful in attracting institutional capital; for all funds closed so far in

2015, the target size has been exceeded at the fi nal close (Fig. 3). This is compared to just half of all funds closed last year exceeding their initial target, and a signifi cant increase on the 13% of Europe-focused funds exceeding their target in 2012. Consistent above-target fund closes are likely another factor in the increasing average fund sizes and signifi cant aggregate capital fi gures seen so far in 2015.

The large average fund size could also help explain why funds closed so far in 2015 have, on average, spent a notably long time in market, at 28 months (Fig. 4). Before attempting to raise unlisted funds, infrastructure fi rms should expect that they could be spending a long time on the road marketing their offering to prospective investors. The increase in time spent on the road for funds closed in more recent years is further displayed in Fig.

44% 50%59%

20%

73%

55%43%

0%

28%25% 12%

20%

13%

14%

7%

0%

28% 25% 29%

60%

13%

32%

50%

100%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009 2010 2011 2012 2013 2014 2015YTD

Above Target

At Target

Below Target

Fig. 3: Breakdown of Europe-Focused Unlisted Infrastructure Funds by Proportion of Target Size Achieved, 2008 - 2015 YTD (As at 16 October 2015)

Source: Preqin Infrastructure OnlineYear of Final Close

Pro

po

rtio

n o

f Ta

rge

t Si

ze A

ch

ieve

d

375

530

368

239 227

437

564

945

0

100

200

300

400

500

600

700

800

900

1,000

2008 2009 2010 2011 2012 2013 2014 2015YTD

Fig. 2: Average Annual Europe-Focused Unlisted Infrastructure Fund Size, 2008 - 2015 YTD (As at 16 October 2015)


Ave

rag

e F

un

d S

ize

(€m

n)

1715

26 26

2021

23

28

0

5

10

15

20

25

30

2008 2009 2010 2011 2012 2013 2014 2015YTD

Fig. 4: Average Time Spent on the Road by Europe-Focused Unlisted Infrastructure Funds, 2008 - 2015 YTD (As at 16 October 2015)


Ave

rag

e T

ime

Sp

en

t o

n t

he

Ro

ad

(M

on

ths)

27

5

20

13

25 25

21

1210.1

2.1

7.0

3.1

5.5

10.5 9.6 9.4

0

5

10

15

20

25

30

2008 2009 2010 2011 2012 2013 2014 2015YTD

No. of FundsClosed

Aggregate Capital Raised (€bn)

Fig. 1: Annual Europe-Focused Unlisted Infrastructure Fundraising, 2008 - 2015 YTD (As at 16 October 2015)



www.preqin.com/EuropeINF15wwwwwwwwwwwwwww


5. Forty-fi ve percent of Europe-focused infrastructure vehicles spent more than two years in market, while a third of funds raised between 2012 and 2013 were raising capital for that amount of time. Additionally, 31% of 2012-2013 funds closed less than one year from their initial launch, while only a quarter of 2014-2015 YTD funds did so in this timeframe.

Unsurprisingly, Europe-based infrastructure fi rms dominate fundraising for Europe-focused unlisted funds; all funds that closed in 2008-2011 and 2013 were raised solely by domestic managers. Only recently have we seen internationally based managers starting to raise Europe-focused funds, with 14% of all funds closed in 2014 coming from non-Europe-headquartered fund managers. However, those international managers that enter the market have had some success: two of the top 10 Europe-focused funds closed since the beginning of 2014 were raised by fi rms headquartered in Australia.

Fig. 6 lists the 10 largest Europe-focused funds to have closed since the beginning of 2014. Three funds top the list having closed on €2bn: Antin Infrastructure Fund II, First State European Diversifi ed Infrastructure Fund and Copenhagen Infrastructure II. Additionally, the majority of funds in the list closed in 2015, further highlighting the strong fundraising environment seen in 2015.

31%25%

22%25%

16%

5%

3%

10%

16%20%

13% 15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012-2013 2014-2015 YTD

More than 36Months

31-36 Months

25-30 Months

19-24 Months

12-18 Months

Less than 12Months

Fig. 5: Breakdown of Europe-Focused Unlisted Infrastructure Funds by Time Spent on the Road, Funds Closed 2012-2013 vs. Funds Closed 2014-2015 YTD (As at 16 October 2015)


Pro

po

rtio

n o

f Fu

nd

s

Fig. 6: 10 Largest Europe-Focused Unlisted Infrastructure Funds Closed 2014-2015 YTD (As at 16 October 2015)

Fund Firm Final Close Date Fund Size (mn) Geographic Focus

Headquarters Location

Antin Infrastructure Fund II Antin Infrastructure Partners Jun-14 2,000 EUR Europe France

First State European Diversifi ed Infrastructure Fund

Colonial First State Global Asset Management/First State

InvestmentsJan-15 2,000 EUR Europe Australia

Copenhagen Infrastructure II Copenhagen Infrastructure Partners Jul-15 2,000 EUR Europe, North

America Denmark

Infracapital Partners II Infracapital Oct-14 1,300 GBP Europe UK

Fondi Italiani Per Le Infrastrutture II F2i SGR Jul-15 1,243 EUR Italy Italy

Macquarie Debt Fund Macquarie Infrastructure Debt Investment Solutions Jun-15 739 GBP UK UK

DIF Infrastructure IV DIF Sep-15 1,150 USD Europe, North America Netherlands

Swiss Life (LUX) Global Infrastructure Opportunities

Swiss Life Funds Management (LUX) May-15 1,006 EUR Global Switzerland

AMP Capital Global Infrastructure Debt Fund II AMP Capital Investors Sep-14 1,100 USD Global Australia

iCON Infrastructure Partners III iCON Infrastructure May-15 800 EUR North America, West Europe UK

Source: Preqin Infrastructure Online

Preqin’s European Fundraising Data: A Vital Tool

Preqin’s Infrastructure Online contains comprehensive profi les for over 240 Europe-focused funds closed historically, including information on target and fi nal close sizes, interim closes, known investors, investment preferences and much more.

For more information, please visit: www.preqin.com/infrastructure



Funds in Market

The Europe-focused unlisted infrastructure fund pipeline has remained relatively stable since 2011, with only minor fl uctuations in the number of funds on the road and aggregate capital targeted (Fig. 7). As of October 2015, there were 60 Europe-focused unlisted infrastructure funds in market, targeting €27.2bn in institutional capital commitments, which is largely in line with the amount targeted over the past fi ve years. The average target size for a Europe-focused vehicle currently in market is €528mn. Of the Europe-focused unlisted infrastructure funds in market, one-third have already held at least one interim close. However, the unlisted infrastructure fund market is still competitive, and many infrastructure fund managers can expect to spend a long

time marketing their funds. As shown in Fig. 8, a signifi cant 38% of Europe-focused unlisted infrastructure funds in market have been on the road for more than 18 months, with 31% having been in market for over two years.

Ardian Infrastructure Fund IV is the largest Europe-focused fund currently in market, targeting €2.5bn for investment in infrastructure entities whose main purposes are to fi nance, build, operate, maintain, refurbish or develop infrastructure projects located in European countries, particularly in transportation, energy, public infrastructure and environment sectors or related services.

5552

58

50

60

28.1 28.824.9 26.7 27.2

0

10

20

30

40

50

60

70

Oct-11 Oct-12 Oct-13 Oct-14 Oct-15

No. of FundsRaising

Aggregate Target Capital (€bn)

Fig. 7: Europe-Focused Unlisted Infrastructure Funds in Market over Time, October 2011 - October 2015


Fig. 9: 10 Largest Europe-Focused Unlisted Infrastructure Funds in Market (As at 16 October 2015)

Fund Firm Geographic Focus Target Size (mn) Headquarters Location

Ardian Infrastructure Fund IV Ardian West Europe 2,500 EUR France

Pan-European Infrastructure Fund II Deutsche Asset & Wealth Management Europe 2,500 EUR UK

Cube Infrastructure Fund II Natixis Environnement & Infrastructures Luxembourg Europe 2,000 EUR Luxembourg

GIB Offshore Wind Fund UK Green Investment Bank UK 1,000 GBP UK

European Infrastructure Debt Fund Hastings Funds Management Europe 1,200 EUR Australia

AB European Infrastructure Debt Fund AllianceBernstein Europe, OECD 1,000 EUR UK

UBS Infrastructure Debt Platform UBS Infrastructure Asset Management OECD, West Europe 1,000 USD UK

PPP Equity PIP Dalmore Capital UK 1,000 USD UK

ECM European Infrastructure Debt Fund ECM Asset Management Europe 600 GBP UK

Equitix Fund IV Equitix UK 750 EUR UK


15%

35%

13%

7% 7%

24%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0-6 7-12 13-18 19-24 25-30 31 or More

Fig. 8: Breakdown of Time Spent on the Road by Europe-Focused Unlisted Infrastructure Funds in Market

Source: Preqin Infrastructure OnlineTime Spent in Market (Months)

Pro

po

rtio

n o

f Fu

nd

s




Fund Managers

Preqin’s Infrastructure Online details 182 fund managers headquartered in Europe that have collectively raised $135bn for unlisted infrastructure funds in the last decade. Due to the relative youth of infrastructure as a distinct asset class, these fund managers are, in many cases, relatively inexperienced, with 92% of infrastructure fi rms having raised less than three funds previously and the majority of the universe being fi rst-time fund managers (Fig. 10). However, there are some very experienced players in the market: 3% have raised six or more unlisted infrastructure funds. Fifty-eight percent of infrastructure fi rms have raised less than $500mn for unlisted infrastructure vehicles in the last 10 years (Fig. 11). However, at the other end of the spectrum, the more experienced managers are able to secure larger commitments from investors and close larger vehicles; close to a third of infrastructure fi rms have raised over $1bn from institutional investors.

By a large margin, UK-headquartered Macquarie Infrastructure and Real Assets (MIRA) has raised the largest amount of capital for unlisted infrastructure funds ($29.7bn), and holds over $5bn in dry powder (Fig. 12). Half of the top 10 largest infrastructure fi rms are based in the UK, while France is the base of three fi rms in the top 10: Ardian, Antin Infrastructure Partners and Meridiam.

56%36%

5% 3%

First-Time FundManager

2-3 Funds RaisedPreviously

4-5 Funds RaisedPreviously

6 Funds or MoreRaised Previously

Fig. 10: Breakdown of Europe-Based Fund Managers by Experience


18%

30%

11%14%

18%

11%

0%

5%

10%

15%

20%

25%

30%

35%

Less

th

an

$100

mn

$100

-249

mn

$250

-499

mn

$500

-999

mn

$1-2

.49b

n

$2.5

bn

or M

ore

Fig. 11: Breakdown of Europe-Based Fund Managers by Total Capital Raised for Unlisted Infrastructure in the Last 10 Years


Total Capital Raised in Last 10 Years

Pro

po

rtio

n o

f Fu

nd

Ma

na

ge

rs

Fig. 12: 10 Largest Europe-Focused Infrastructure Fund Managers by Aggregate Capital Raised for Unlisted Infrastructure Funds in the Last 10 Years

Firm Headquarters Location

Total Capital Raised in Last 10 Years ($bn)

Estimated Dry Powder ($bn)

Macquarie Infrastructure and Real Assets (MIRA) UK 29.7 5.3

Ardian France 4.8 1.9

Antin Infrastructure Partners France 4.2 2.4

EQT Funds Management UK 4.2 1.2

F2i SGR Italy 3.7 1.0

Infracapital UK 3.7 0.8

DIF Netherlands 3.7 0.5

3i Infrastructure UK 3.6 0.2

Deutsche Asset & Wealth Management UK 3.5 0.9

Meridiam France 3.2 0.8


Preqin’s Infrastructure Online contains comprehensive profi les for over 180 Europe-headquartered infrastructure fund managers, featuring information on total capital raised in the last 10 years, available dry powder, strategic and geographic preferences, key contact details and more.

For more information, please visit:

www.preqin.com/infrastructure



Assets under Management, Dry Powder and Performance

2014 saw further growth in the Europe-focused unlisted infrastructure fund industry, with assets under management* (AUM) standing at an all-time high of €80bn as of December 2014 (Fig. 13). This represents a 105% increase since December 2010, indicating the rapid growth of the European industry in recent years. Of the total AUM in December 2014, €51bn was held by fi rms as unrealized value in infrastructure assets, while capital committed to Europe-focused funds that had not yet been called up by fund managers (dry powder) amounted to €29bn. While dry powder for Europe-focused funds saw a sharp decline in 2012, this has since rebounded to the levels seen in December 2011 and now stands at €31bn in October 2015 (Fig. 14). However, the level of dry powder has not increased at the same rate as North America-based dry powder. For all the vintage years examined, the majority of capital is still held in infrastructure assets, refl ecting the long-term nature

of the investments made by infrastructure funds (Fig. 15). The median distributions to paid-in capital (DPI) by vintage year is less than 100% across all vintages, meaning relatively few funds have distributed large portions of their capital. Unsurprisingly, vintage 2005 funds, the most mature funds considered, have distributed the largest proportion of capital to investors, with a median DPI of 44%. The target net IRRs of Europe-focused unlisted infrastructure funds refl ect the conservative risk/return profi le of many funds actively investing in the region, with 60% targeting returns of 12.5% or less, and the largest proportion (34%) targeting between 10% and 12.5%. While the potential for infl ation protection and long-term, stable returns are some of the key attractions of infrastructure, Fig. 16 does demonstrate that the spread of targeted returns among individual funds can differ signifi cantly.

4 612 15 14 12 16

25 2028 29

1 35

9 13 14

23

33 37

4151

0

10

20

30

40

50

60

70

80

90

De

c-0

4

De

c-0

5

De

c-0

6

De

c-0

7

De

c-0

8

De

c-0

9

De

c-1

0

De

c-1

1

De

c-1

2

De

c-1

3

De

c-1

4

Unrealized Value (€bn)

Dry Powder (€bn)

Fig. 13: Europe-Focused Infrastructure Assets under Management (As at 31 December 2014)


Ass

ets

un

de

r Ma

na

ge

me

nt

(€b

n)

0

10

20

30

40

50

60

De

c-0

3

De

c-0

4

De

c-0

5

De

c-0

6

De

c-0

7

De

c-0

8

De

c-0

9

De

c-1

0

De

c-1

1

De

c-1

2

De

c-1

3

De

c-1

4

Oc

t-15

North America

Europe

Asia

Rest of World

Fig. 14: Unlisted Infrastructure Dry Powder by Primary Geographic Focus, December 2003 - October 2015


Dry

Po

wd

er (

€bn

)

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

2005

2006

2007

2008

2009

2010

2011

2012

2013

Residual Value toPaid-in Capital (%)

Distributions to Paid-in Capital (%)

Called-up toCommitted Capital(%)

Fig. 15: Europe-Focused Unlisted Infrastructure Funds - Median Called-up, Distributed and Residual Value Ratios by Vintage Year

Source: Preqin Infrastructure OnlineVintage Year

26%

34%

21%19%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Less than 10% 10-12.5% 12.6-15.9% 16% and Above

Fig. 16: Breakdown of Europe-Focused Unlisted Infrastructure Funds by Target Net IRR, Funds Closed 2010-2015 YTD (As at 14 October 2015)

Source: Preqin Infrastructure OnlineTarget Net IRR

Pro

po

rtio

n o

f Fu

nd

s

*Preqin defi nes a fi rm’s assets under management as the sum of its dry powder and unrealized value of portfolio assets.




Institutional Investors

Europe-based institutional infrastructure investors represent an important source of capital for the asset class, making up 30% of the active infrastructure investor population globally and possessing approximately €25tn in combined AUM. These investors’ contributions to the asset class look set to increase over the coming months, with a large proportion under their target allocations and many new investors attracted to the potential for long-term, stable yields the asset class can provide.

Large institutional investors such as pension funds, insurance companies and asset managers make up the majority of infrastructure investors in Europe. Notably, the region’s large private wealth industry means family offi ces and wealth managers collectively represent 16% of the investor population. The make-up of Europe-based investors in the asset class is becoming increasingly diverse, with small- to mid-sized investors of varying types also increasingly drawn to the asset class. As such, a fi fth of Europe-based investors in infrastructure have less than €1bn in AUM, and 44% have between €1bn and €9.9bn (Fig. 18).

The majority of Europe-based infrastructure investors are based in the major economies in West Europe (Fig. 19). Unsurprisingly, the

UK is home to largest proportion (33%) of investors in the region, although Switzerland, Germany, the Netherlands, Italy and France each represent over 5% of Europe-headquartered investors.

Infrastructure is a relatively new part of many Europe-based investors’ portfolios; therefore some invest in the asset class through their private equity or real asset allocations (Fig. 20). However, half of Europe-based investors now have a separate allocation to infrastructure within their investment portfolio, a signifi cantly larger proportion than the corresponding 34% for investors in all other regions, indicative of the sophistication of Europe-based institutions in the asset class. Due to the youth of the asset class in many investors’ portfolios, the majority of Europe-based institutions allocate a relatively small proportion of their total assets to the asset class; over three-quarters of investors hold less than 5% of their AUM in infrastructure (Fig. 21). Encouragingly, however, 58% of Europe-headquartered investors are below their target allocation to the asset class, indicating that additional capital is likely to fl ow into the asset class as these investors move closer to their targets (Fig. 22).

25%

17%

10%9%

8%

8%

7%

5%

4%7%

Private Sector PensionFundPublic Pension Fund

Insurance Company

Asset Manager

Wealth Manager

Family Office

Banks & InvestmentBanksFoundation

Government Agency

Other

Fig. 17: Breakdown of Europe-Based Institutional Investors in Infrastructure by Type


20%

44%

21%

6%9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Less than €1bn

€1-9bn €10-49bn €50-99bn €100bn or More

Fig. 18: Breakdown of Europe-Based Infrastructure Investors by Assets under Management

Source: Preqin Infrastructure OnlineAssets under Management

Pro

po

rtio

n o

f In

vest

ors

Institutional Investors: In-Depth Data

Preqin’s Infrastructure Online provides comprehensive information on over 790 Europe-based institutional investors active in infrastructure.

Detailed profi les include current and target allocation to infrastructure, strategy and geographic preferences, future investment plans, previous infrastructure fund commitments and much more. Plus, access direct contact information for key decision makers at these institutions.

For more information, please visit:




33%

12%10% 9%

6% 5% 4% 3% 3% 3% 2% 2%

7%

0%

5%

10%

15%

20%

25%

30%

35%

UK

Switz

erla

nd

Ge

rma

ny

Ne

the

rlan

ds

Italy

Fra

nc

e

Swe

de

n

De

nm

ark

Belg

ium

Fin

lan

d

No

rwa

y

Spa

in

Oth

er

Fig. 19: Breakdown of Europe-Based Infrastructure Investors by Location

Source: Preqin Infrastructure OnlineInvestor Location

Pro

po

rtio

n o

f In

vest

ors

Fig. 23: Sample of Europe-Based Institutional Investors Targeting Unlisted Infrastructure in the Next 12 Months

Investor Headquarters Location Type Investment Plans for the Next 12 Months

Wüstenrot Versicherungs Austria Insurance Company Will invest €10-20mn in global unlisted infrastructure funds in 2016, targeting opportunities in the more traditional infrastructure sectors.

UMR Corem France Public Pension FundPlans to invest a total of €30mn in two unlisted infrastructure funds over the next year, committing €15mn to each fund. The pension fund will target energy projects within France and Scandinavia.

CDC Group UK Government Agency

Will continue to invest in infrastructure opportunities in South Asia and Africa, via direct strategies and unlisted fund commitments. Debt provision for infrastructure projects in both regions will also be considered. Investments will be focused within core industries, with a particular focus on power generation and renewable energy assets in Sub-Saharan Africa, as well as transport and logistics assets.


7% 7%

8%

24%16%

12%19%

23%

50%

34%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Europe-BasedInvestors

All Other Investors

Separate InfrastructureAllocation

Part of Private EquityAllocation

General AlternativesAllocation

Part of Real AssetsAllocation

Other

Fig. 20: Breakdown of Europe-Based Institutional Investors in Infrastructure by Source of Allocation

Source: Preqin Infrastructure OnlineP

rop

ort

ion

of

Inve

sto

rs

19%

59%

16%

2%4%

7%

56%

30%

5% 3%

0%

10%

20%

30%

40%

50%

60%

70%

Less than1%

1-4.9% 5-9.9% 10-14.9% 15% orMore

CurrentAllocation

TargetAllocation

Fig. 21: Breakdown of Europe-Based Institutional Investors’ Current and Target Allocations to Infrastructure

Source: Preqin Infrastructure OnlineAllocation to Infrastructure (As a % of AUM)

Pro

po

rtio

n o

f In

vest

ors

10%

33%

58%

Above TargetAllocation

At TargetAllocation

Below TargetAllocation

Fig. 22: Proportion of Europe-Based Infrastructure Investors that Are At, Above or Below their Target Allocation to the Asset Class





Deals

The annual number of deals completed for European infrastructure assets has declined from the peak of 489 transactions in 2011 to 406 deals in 2014 (Fig. 24). At the current rate, 2015’s 193 completed deals could be the lowest number of deals completed in a single year since 2004 (177), although this has not had a corresponding effect on aggregate deal value. Rising valuations for European infrastructure assets has pushed up the estimated aggregate deal size to over €100bn in 2015 so far; to place this in context, this represents approximately three-quarters of the average estimated annual value of deals for European infrastructure between 2008 and 2014, all from under half the average number of transactions. The impact of rising valuations on infrastructure transactions can also be seen in Fig. 25. Average deal size for European assets has been rising annually since 2013, and now stands at an all-time high of €519mn, 58% higher than the 2014 average deal size. Critical to this has been the rise in the number of transactions

completing for over €500mn, and crucially those over €1bn: 18% of deals have completed in this size bracket in 2015 so far, double the proportion of each of the preceding two years (Fig. 26). By a large margin, the UK has had the most completed infrastructure deals of any single country in Europe in the period 2010 to 2015 YTD; over 1,000 transactions have taken place since 2010, more than the next 10 largest European countries by deal fl ow combined (Fig. 27). With four-times fewer completed deals, France has the next highest number of infrastructure transactions, followed by other West European nations: Germany (189), Italy (149), Spain (127) and the Netherlands (85). Interestingly, Turkey is the only country to feature in the top 10 countries by deal fl ow based outside West Europe; deals taking place in Turkish assets include the $6.5bn acquisition of Gebze-Orhangazi-Izmir motorway PPP by the Otoyol consortium consisting of Nurol, Özaltin, Makyol, Yüksel, Gocay and Astaldi.

429397 377

489460 451

406

193

0

20

40

60

80

100

120

140

160

180

200

0

100

200

300

400

500

600

2008 2009 2010 2011 2012 2013 2014 2015YTD

No. of DealsReported Aggregate Deal Size (€bn)Estimated Aggregate Deal Size (€bn)

Fig. 24: Number and Aggregate Value of Completed European Infrastructure Deals, 2008 - 2015 YTD (As at 15 October 2015)


No

. of

De

als

Ag

gre

ga

te D

ea

l Va

lue

(€bn

)

423

233253

313

387

278

328

519

0

100

200

300

400

500

600

2008 2009 2010 2011 2012 2013 2014 2015 YTD

Fig. 25: Average European Infrastructure Deal Size, 2008 - 2015 YTD (As at 15 October 2015)


Ave

rag

e D

ea

l Siz

e (

€mn

)

54% 50% 47%55% 53%

35%

29% 33%27%

31%26%

33%

9% 9%

11%

5%12%

14%

8% 7%15%

9% 8%18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2011 2012 2013 2014 2015YTD

€1bn or More

€500-999mn

€100-499mn

Less than €100mn

Fig. 26: Breakdown of Completed European Infrastructure Deals by Transaction Value, 2010 - 2015 YTD (As at 15 October 2015)


Pro

po

rtio

n o

f D

ea

ls

1,076

267189

149 12785 61

423

0

200

400

600

800

1,000

1,200

UK

Fra

nc

e

Ge

rma

ny

Italy

Spa

in

Ne

the

rlan

ds

Turk

ey

Oth

er

Fig. 27: Breakdown of Completed European Infrastructure Deals by Country, 2010 - 2015 YTD (As at 15 October 2015)


No

. of

De

als



One of the main attractions of the European infrastructure market for both institutional investors and fund managers is the abundance of existing, operational infrastructure assets. Many investors focus on lower risk investments in proven advanced brownfi eld or secondary stage infrastructure assets; correspondingly, 70% of European deals completed since 2010 were made in such assets. So far this year, 72% of transactions have been for assets at the secondary stage, up from 59% in 2014, including the largest infrastructure transaction of the last two years, the €6.6bn acquisition of Fortum Distribution AB, Fortum’s electricity distribution networks in Sweden. The deal was completed in March 2015 by a consortium consisting of Borealis Infrastructure (OMERS), Tredje AP-Fonden, Första AP-Fonden and Folksam.

Fewer European deals have been made in greenfi eld assets this year: the greenfi eld share of total deal fl ow has declined from 32% in 2014 to 19% of all European deals. However, all three of the largest transactions to occur in Europe since 2010 have been for greenfi eld assets, including the £18bn partnership to construct Hinkley Point C Nuclear Power Station by EDF Group, China General Nuclear Power Group and Areva in October 2015.

With the European Union committed to clear renewable energy targets, it is unsurprising that transactions in this sector represent the largest proportion of completed deals on the continent; 40% of deals in 2015 so far have been for renewable energy assets, a slight decline on the 44% average (Fig. 28). Deals for other

energy-related assets accounts for a quarter of deals in 2015 YTD, the smallest proportion in the period 2010 to 2015 YTD. Activity involving transportation assets has markedly increased this year and now represents 15% of transactions, above its historical average of 4%.

50%44% 42% 40%

46%40%

32%

29% 27% 36%31%

26%

6%18% 23% 13% 13%

11%

5% 4% 2% 4% 5%

15%

6% 4% 5% 5% 3%3%

1% 1% 1% 2% 2%5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2011 2012 2013 2014 2015 YTD

Other

Utilities

Transport

Social

Energy

RenewableEnergy

Fig. 28: Breakdown of Completed European Infrastructure Deals by Industry, 2010 - 2015 YTD (As at 15 October 2015)


Pro

po

rtio

n o

f D

ea

ls

Fig. 29: 10 Largest European Infrastructure Deals, 2010 - 2015 YTD (As at 15 October 2015)

Asset Location Industry Investor(s) Deal Size (mn) Stake (%) DateHinkley Point C Nuclear Power Station UK Nuclear Areva, EDF Group, China General

Nuclear Power Group 18,000 GBP 100 Oct-15

SEA High Speed Railway Line France Railroads Ardian, CDC Infrastructure, Meridiam,

VINCI Concessions 7,800 EUR 100 Jun-11

Intercity Express Programme UK Rolling Stock Hitachi, John Laing 5,800 GBP 100 Jul-12

UK Power Networks UK Power DistributionCheung Kong Infrastructure Holdings,

Li Ka Shing Foundation, Power Assets Holdings

5,800 GBP 100 Nov-10

Fortum Distribution AB Finland Power Distribution AP-Fonden 1, AP-Fonden 3, Folksam, OMERS 6,600 EUR 100 Mar-15

Thames Tideway Tunnel UK Domestic Waste Management

Allianz Capital Partners, Amber Infrastructure Group, Dalmore Capital, DIF, Swiss Life Asset

Management

4,200 GBP 100 Jul-15

Gebze-Orhangazi-Izmir motorway PPP Turkey Roads Astaldi, Göçay, Makyol, Nurol

Holding, Özaltin, Yüksel 6,500 USD 100 Sep-10

Central Networks UK Power Distribution Pennsylvania Power & Light 4,000 GBP 100 Apr-11

SOCAR Turkey Aegean Refi nery Turkey Natural Resources

Refi neriesState Oil Company of Azerbaijan

Republic 5,600 USD 100 Jun-14

Compañía Española de Petróleos Spain Natural Resources

Refi neriesInternational Petroleum Investment

Company 3,700 EUR 53 Feb-11


Looking to Track European Infrastructure Deal Activity?

View detailed information on more than 5,200 European transactions on Preqin Infrastructure Online, including information on the type of infrastructure asset and location, buyers and sellers, data on the equity invested and the percentage stake acquired, plus information on the deal date, structure and duration, as well as debt providers and legal and fi nancial advisors.

For more information, or to arrange a demonstration, please visit: www.preqin.com/infrastructure




UK

11

2

9

1112

10

12

6

8.0

0.7

4.43.8

2.8

8.4

6.2

2.3

0

2

4

6

8

10

12

14

2008 2009 2010 2011 2012 2013 2014 2015YTD

No. of FundsClosed


Fig. 30: Annual Unlisted Infrastructure Fundraising by UK-Based Managers, 2008 - 2015 YTD (As at 14 October 2015)


113

169

134

189

237224

214

84

0

5

10

15

20

25

30

35

40

45

50

0

50

100

150

200

250

2008 2009 2010 2011 2012 2013 2014 2015YTD

No. of Deals Reported Aggregate Deal Value (€bn)

Fig. 31: Number and Aggregate Value of Completed UK Infrastructure Deals, 2008 - 2015 YTD (As at 14 October 2015)


No

. of

De

als

Ag

gre

ga

te D

ea

l Va

lue

(€bn

)

57%64% 63% 65%

57%

72%62%

46%

19%

23% 29%18%

18%

24%

24%

34%

10%

3%3%

11%

10%

2%10%

3%

14% 11% 6% 6%15%

2% 4%17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009 2010 2011 2012 2013 2014 2015YTD

€1bn or More

€500-999mn

€100-499mn

Less than €100mn

Fig. 32: Breakdown of UK Infrastructure Deals Completed by Transaction Value, 2008 - 2015 YTD (As at 14 October 2015)


Pro

po

rtio

n o

f D

ea

ls

22%

53%

18%

3% 5%

Less than €1bn

€1-9bn

€10-49bn

€50-99bn

€100bn or More

Fig. 33: Breakdown of UK-Based Infrastructure Investors by Assets under Management


Fig. 34: Five Largest Completed Infrastructure Deals in the UK, 2013 - 2015 YTD (As at 14 October 2015)

Asset Industry Investor(s) Deal Size (£mn) Stake (%) Date

Hinkley Point C Nuclear Power Station Nuclear Areva, EDF Group, China General Nuclear Power Group 18,000 100 Oct-15

Thames Tideway Tunnel Domestic Waste Management

Allianz Capital Partners, Amber Infrastructure Group, Dalmore Capital,

DIF, Swiss Life Asset Management4,200 100 Jul-15

Eversholt Rail Group Rolling Stock Cheung Kong Infrastructure Holdings 2,500 100 Jan-15

Rampion Offshore Wind Farm Wind Power E.ON 2,000 100 Jul-14

London Stansted Airport Airports Manchester Airports Group 1,500 100 Jan-13




West Europe (excl. UK)

16

6

13

5

15 15

8

6

4.2

2.3

3.9

0.5

4 3.84.4

3.4

0

2

4

6

8

10

12

14

16

18

2008 2009 2010 2011 2012 2013 2014 2015YTD

No. of FundsClosed


Fig. 35: Annual Unlisted Infrastructure Fundraising by West Europe-Based Managers, 2008 - 2015 YTD (As at 15 October 2015)


228

191 189

228

147164

140

76

0

5

10

15

20

25

30

35

0

50

100

150

200

250

2008 2009 2010 2011 2012 2013 2014 2015YTD


Fig. 36: Number and Aggregate Value of Completed Infrastructure Deals in West Europe, 2008 - 2015 YTD (As at 15 October 2015)


No

. of

De

als

Ag

gre

ga

te D

ea

l Va

lue

(€bn

)

28%

14%

37%

11%

10%

Less than €50mn

€50-99mn

€100-499mn

€500-999mn

€1bn or More

Fig. 37: Breakdown of Completed Infrastructure Deals in West Europe by Transaction Value, 2008 - 2015 YTD (As at 15 October 2015)


16%

42%

21%

8%

13%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Less than €1bn

€1-9.9bn €10-49.9bn €50-99.9bn €100bn or More

Fig. 38: Breakdown of West Europe-Based Infrastructure Investors by Assets under Management

Source: Preqin Infrastructure OnlineAssets under Management

Pro

po

rtio

n o

f In

vest

ors

Fig. 39: Five Largest Completed Infrastructure Deals in West Europe, 2013 - 2015 YTD (As at 15 October 2015)

Asset Industry Location Investor(s) Deal Size (€mn) Stake (%) Date

TDF Group Telecommunications France

APG - All Pensions Group, Arcus Infrastructure Partners, Brookfi eld Asset Management, Public Sector Pension Investment Board, Unidentifi ed

Investor/s

3,560 100 Nov-14

Tank and Rast Motorway Service Stations Germany

Abu Dhabi Investment Authority, Allianz Capital Partners, MEAG Munich Ergo Asset

Management, OMERS3,500 100 Aug-15

ANA-Aeroportos de Portugal Airports Portugal VINCI Concessions 3,080 95 Feb-13

E.ON Spain & E.ON Portugal Power Distribution Spain Macquarie Infrastructure and Real Assets

(MIRA), Wren House Infrastructure Management 2,500 100 Dec-14

CDP Reti Natural Resources Italy Cassa Forense, State Grid Corporation of China 2,414 49.9 Nov-14





Nordic, Central and Eastern Europe

3

1

3

1

0.30.1

0.3

2.0

0

1

2

3

4

2008-2009 2010-2011 2012-2013 2014-2015YTD

No. of FundsClosed


Fig. 40: Annual Unlisted Infrastructure Fundraising by Nordic-Based Managers, 2008 - 2015 YTD (As at 15 October 2015)

Source: Preqin Infrastructure OnlineDate of Final Close

1

0

2

1

0.10.0

0.1

0.4

0

0.5

1

1.5

2

2.5

2008-2009 2010-2011 2012-2013 2014-2015YTD

No. of FundsClosed


Fig. 41: Annual Central & Eastern Europe-Based Unlisted Infrastructure Fundraising, 2008 - 2015 YTD (As at 15 October 2015)

Source: Preqin Infrastructure OnlineDate of Final Close

57

8

23

37

2731

22

12

0

1

2

3

4

5

6

7

8

0

10

20

30

40

50

60

2008 2009 2010 2011 2012 2013 2014 2015YTD


Fig. 42: Number and Aggregate Value of Infrastructure Deals Completed in the Nordic Region, 2008 - 2015 YTD (As at 15 October 2015)


No

. of

De

als

Ag

gre

ga

te D

ea

l Va

lue

(€bn

)

3129

3135

49

3331

29

0

5

10

15

20

25

0

10

20

30

40

50

60

2008 2009 2010 2011 2012 2013 2014 2015YTD

No. of Deals Reported Aggregate Deal Size (€bn)

Fig. 43: Number and Aggregate Value of Infrastructure Deals Completed in Central & Eastern Europe, 2008 - 2015 YTD (As at 15 October 2015)


No

. of

De

als

Ag

gre

ga

te D

ea

l Va

lue

(€bn

)

Fig. 44: Five Largest Completed Infrastructure Deals in the Nordic Region, 2013 - 2015 YTD (As at 15 October 2015)

Asset Location Industry Investor(s) Deal Size (mn) Stake (%) Date

Fortum Distribution AB Finland Power Distribution AP-Fonden 1, AP-Fonden 3, Folksam,

OMERS 6,600 EUR 100 Mar-15

Caruna Oy Finland Power Distribution

Colonial First State Global Asset Management/First State Investments, Elo

Mutual Pension Insurance Company, Keva, OMERS

2,550 EUR 100 Dec-13

DONG Energy Denmark Energy ATP Lifelong Pension, GS Infrastructure Investment Group, PFA Pension 11,000 DKK 26 Jan-14

Kraftgården AB Sweden Hydro Power Unidentifi ed Investor/s 605 EUR 26.7 Jun-13

ESVAGT Denmark Shipping 3i Infrastructure, AMP Capital Investors 388 GBP 100 Jul-15


© 2015 Preqin Ltd. / www.preqin.com

If you want any further information, or would like a demo of our

products, please contact us:

New York:

One Grand Central Place60 E 42nd Street

Suite 630, New YorkNY 10165

Tel: +1 212 350 0100Fax: +1 440 445 9595

London:

3rd FloorVintners’ Place

68 Upper Thames StreetLondon

EC4V 3BJTel: +44 (0)20 3207 0200

Fax: +44 (0)87 0330 5892

Singapore:

One Finlayson Green, #11-02 Singapore 049246Tel: +65 6305 2200

Fax: +65 6491 5365

San Francisco:

One Embarcadero CenterSuite 2850

San FranciscoCA 94111

Tel: +1 415 316 0580Fax: +1 440 445 9595

Hong Kong:

Level 9, Central Building1-3 Pedder Street

Central, Hong KongTel: +852 3958 2819

Fax: +852 3975 2800

Email: [email protected]: www.preqin.com

Preqin Special Report: European Infrastructure

November 2015

Preqin: Global Data and Intelligence

With global coverage and detailed information on all aspects of the infrastructure asset class, Preqin’s industry-leading Infrastructure Online service keeps you up-to-date on all the latest developments in the infrastructure universe.

Examine infrastructure investment trends

Search detailed information on over 12,100 infrastructure transactions and bids historically, including buyers and sellers, equity invested, debt provided and the percentage stake acquired. Identify key geographical regions and sectors that are attracting infrastructure investment.

Track infrastructure assets

Analyze ownership information, and past transaction history for more than 6,800 infrastructure assets across the globe, including asset location, project stage and industry.

Find fi rms investing in infrastructure

Search for fi rms actively targeting infrastructure projects and assets, with detailed profi les on fund managers, institutional investors and trade buyers from around the world, including background, key contacts and past deal activity.

Identify service providers

Track over 1,000 debt providers, law fi rms, fi nancial advisors and other service providers working on infrastructure transactions. View service providers working on specifi c deals.

Source new investors for funds and co-investments

Find the most relevant investors, with access to detailed profi les for over 2,500 institutional investors actively investing in infrastructure, including insurance companies, pension funds, family offi ces, foundations, wealth managers, endowment plans, banks and more.

Benchmark performance

Identify which fund managers have the best track records with performance benchmarks for infrastructure funds and view performance details for over 200 individual named funds.

Find out how Preqin’s infrastructure products and services canhelp you:


preqin special report: european infrastructure...infrastructure funds closed this year have exceeded...

Documents