Funds Report – Q1 fundraising bottoms out

After a record-setting year for closed-end fundraising in 2022, the first quarter of 2023 has fallen flat.

Q1 2023 was challenging for the infrastructure funds as inflationary pressures and economic and geopolitical uncertainty led to investor caution.

IJInvestor data show a dramatic drop in fund closing and capital raised since Q2 2022.

To access the Q1 2023 fund and investor report (apologies, it takes 2 clicks) CLICK HERE…

After record-breaking capital raising in 2022 nearing $154 billion – the highest level over the past 5 years – there was a dramatic decrease in the first quarter of this year. Q1 capital raising results were down 68% compared with the first quarter of 2022 – the best quarterly period in terms of infra fundraising over the last 2 years.

Meanwhile, it is a world of difference on the M&A front. The last 5 quarters were a prolific time when it comes to M&A and infrastructure funds with renewables, power transmission and telecoms the most active sectors for infrastructure funds in
Q1 2023.

The most active regions in M&A in the first quarter according to IJInvestor was Europe, which made up 65% of deals by deal count. This was followed by North America, which made up 18% of deal count.

The top infrastructure deals of the quarter included the JP Morgan Infrastructure Investments Fund acquisition of South Jersey Industries in February, while Macquarie teamed up with Pantheon Infrastructure and British Columbia Investment Management Corp to acquire a 60% stake in UK-based National Grid Gas Transmission & Metering. Meanwhile, KKR acquired a 30% stake in Telenor’s fibre business in Norway for $1.1 billion.