Forty-four percent of Asian institutional investors who have already made investments in infrastructure are looking to allocate more capital into the investment category in the next 12 months. This percentage is the highest compared to North America, Europe and the rest of the world, indicating great optimism by Asian investors on investing in infrastructure funds, according to a latest report by Preqin Ltd, a London-based private equity research firm.
The report noted that despite a higher percentage of investors looking to allocate more capital into infrastructure in Asia, the absolute size of infrastructure investments in the region is still small when compared to Europe and North America.
For example, looking at the geographical breakdown of infrastructure deals during the first quarter of this year, 47% and 30% took place in Europe and North America. Deals in Asia only accounted for 7%.
For infrastructure funds hoping to raise new capital this year, a global focus will be the most attractive for fundraising. Thirty-nine percent of institutional investors with a global focus are planning new investments in the next 12 months. Next, Europe-focused and emerging markets-focused funds are also in strong demand, with 28% and 27% of institutional investors planning new commitments.
The Kuwait Fund for Arab Economic Development, the University of British Columbia Endowment, Santa Barbara County Employee's Retirement System are all planning new commitment to infrastructure funds in the next 12 months, according to the report by Preqin.
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