Chart of the week: Infrastructure debt fundraising surges

Annual closed-ended private infrastructure debt fundraising increased by $7bn between 2010 and 2015.

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There has been a surge in interest in closed-ended private infrastructure debt in recent years, with the amount of capital raised between 2010 and 2015 increasing from almost nothing to more than $7 billion.

So far this year, $435 million has been raised by Ashmore Colombia Infrastructure Senior Debt Fund, which closed in February. This surpasses the $418 million amassed by all funds closed in the equivalent periods of 2014 and 2015 combined.

With this growth has been an appetite for infrastructure debt focused on emerging economies. In 2010, China wasn’t on the radar of any infrastructure debt funds. By 2015, more than 30 percent of all capital raised for the strategy was aimed at the country.

The largest China-focused infrastructure debt vehicle to close in 2015 was the CCCC-NSSF Infrastructure Fund. Managed by China Communication Construction Company, it gathered $2.4 billion and is the second largest of its type in recent years behind Macquarie’s Infrastructure Partners III, which raised $3 billion by the time it closed in 2014.

There are currently 33 infrastructure debt funds in market, targeting a total of $28.74 billion. These have raised $2.94 billion so far, with five having held an interim close.