Infrastructure SMIDs = Hidden Gems

Five Largest Infrastructure Funds as a % of Total Fundraising

In addition to the ballooning average fund size we’re seeing, fundraising concentration at the very top end of the spectrum has increased as well. Despite a challenging fundraising environment, the top five largest fundraises captured a staggering 80% of infrastructure capital raised through 2023, as seen in this week’s chart. 

What does this mean for investors? The larger concentration of capital being allocated to fewer large-cap funds has led to higher competition for deals with enterprise values over $2.5 billion. As a result, we believe that lower and middle-market opportunities continue to be an attractive segment due to less competition from an increasing number of large and mega-cap funds which all compete for the same deals.    

Learn more in this highlight from our 2024 Real Assets Market Overview. 

Catch up on Chart of the Week.

Definitions 

Infrastructure – An investment strategy that invests in physical systems involved in the distribution of people, goods, and resources.