Chart of the week: Private infrastructure debt fund strategies

 Strong preference for mezzanine debt strategies, while venture debt fundraising raises least


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The chart of the week shows a strong preference for Mezzanine debt funds over other strategies for infrastructure funds raised between 2008 and H1 2015. Of the funds closed over that period, 66.6 percent were subordinated or mezzanine debt vehicles, amounting to $11.5 billion raised worldwide. Among them, two major global funds – EIG Energy Fund XV and AMP Capital Infrastructure Debt Fund II – targeted $2.5 billion and $1 billion each and closed in 2010 and 2014 respectively.

Senior debt funds were mostly raised to be invested in North America and Western Europe. Indeed, out of the $3.6 billion raised, $1.6 billion gathered was for infrastructure funds focused on those two regions. The share of aggregate capital collected by unitranche strategies was largely thanks to a major fund manager, Westbourne Capital. The GP raised a $1.7 billion Infrastructure Debt Fund with a global appetite, which is still investing to date after closing in July 2013.

Finally the graph shows that fundraising levels for venture debt were low, with only one fund closing globally since 2008. Hudson Clean Energy Credit Facility Co-Investment raised $90 million for opportunities in North America.