Most institutional investors with infrastructure holdings plan to increase or at least maintain investments in the long term, a survey has found.
The latest survey on the asset class by data and analysis firm Preqin, which polled 430 investors and looked at different types of alternative investments, showed 84% of infrastructure investors were aiming to increase or maintain their allocation over the longer term.
More than half of investors (56%) said they intended to make at least three investments in infrastructure funds in 2014, with 43% saying they intended to commit $100m (€73m) or more over the next 12 months.
Investors had become more satisfied that their interests were aligned with those of managers than had been the case four years ago, the survey showed.
Some 65% of investors said they felt fund managers and investors’ interests were aligned in the 2014 survey, compared with only 27% who had given that answer in 2010.
But 61% of investors in the study said management fees were a key area in need of improvement.
In terms of regions, Europe was most favoured for investment this year, with 41% of investors in the asset class targeting this area, followed by North America, which was within sights of 38% of investors.
Infrastructure investment was strong last year, Preqin said, with $40bn raised by 52 unlisted infrastructure funds.
This was the largest amount of capital raised in a single year by funds since 2008, the survey found.
Preqin suggested that, in future, capital may become more concentrated among a small number of very experienced infrastructure investors due to investor priorities.
Experience, according to the poll, was the most sought-after attribute for investors choosing new managers, with 80% of respondents citing this as a key factor.
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