‘Record’ US$28 billion private infrastructure fund

In the absence of sufficient government capital, projects are looking to private finance

Canada-based private capital group Brookfield has raised a record US$28 billion infrastructure fund as investors increasing see infrastructure projects as attractive investments for their finances, according to a report in the Financial Times.

The fund, raised by the group’s Brookfield Infrastructure Partners arm, is said to be the largest-ever dedicated to investing in infrastructure assets such as airports, toll roads, pipelines and natural gas export plants.

There is a strong demand worldwide for infrastructure projects as countries look to build stronger supply chains, increase their energy independence and upgrade their healthcare and transport facilities.

In the absence of sufficient government capital, projects are looking to private finance but to attract this money they have to offer returns high enough to attract private investment.

According to the Financial Times, other large asset managers including Blackstone, KKR, and Global Infrastructure Partners (GIP), have raised significant new funds or are setting ambitious goals for new funds. GIP is reported to be targeting US$25 billion for its latest infrastructure fund, while Blackstone has set a goal to manage more than US$100 billion in infrastructure investment.