July 11, 2024
Five Largest Infrastructure Funds as a % of Total Fundraising
Infrastructure SMIDs = Hidden Gems
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.