More investors going direct in infrastructure deals - Preqin

LONDON Thu May 1, 2014 11:31am EDT

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LONDON May 1 (Reuters) - Institutional investors directly invested in infrastructure deals worth an estimated $237 bln during 2012 and 2013, data provider Preqin said on Thursday, up from an estimated $202 billion in the two prior years.

Since 2007, the value of transactions involving direct investment by institutional investors has accounted for approximately 34 percent of the total value of capital invested in infrastructure assets, it said in a statement.

"With almost a quarter of deals each year now being financed either entirely, or in part, by investors committing capital directly, these institutions are an essential pool of capital for infrastructure projects looking for funding," said Andrew Moylan, Head of Real Assets Products.

Moylan said the number of groups looking to invest directly was at an all-time high, albeit mainly the bigger investors with a history of investing in infrastructure and with a dedicated team.

"With investors continuing to search for yield and strong long-term returns to meet future liabilities, as well as seeking to avoid third party manager fees, direct investment activity by institutions is likely to grow," he added. (Reporting by Simon Jessop)

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