GLOBAL - Infrastructure fundraising by 25 global funds totalled $27.7bn (€19.1bn) in 2010, up from $7.7bn in 2009, according to a latest survey conducted by Preqin.
More than one-third of the world's 60 largest investors surveyed have plans to increase their allocation of infrastructure assets in the long term, up significantly from 13% in 2009.
Preqin said the outlook for the asset class was improving, but added that the situation remained challenging as supply continued to outstrip demand. It said fund managers would have to work hard to attract investment.
The latest survey shows an increasing convergence of interest between fund managers and investors.
Those who said their interest aligned perfectly with that of their fund manager accounted for 49% of the respondents, up by nearly 21 percentage points from 28% in 2010.
Coming at the top of the list of concerns was 'management fees', with 62% of respondents saying they were unhappy, followed by problems regarding 'payment of fees on un-invested capital' and 'carry structure', with 56% and 53% choosing the options, respectively.
According to the study, 22% of participants made no investment in the last year, while 58% made at least one infrastructure investment decision.
The gains look impressive when compared with October 2009, when only 19% of respondents made a commitment to the asset class in the preceding 12 months.
In addition, 40% plan to definitely invest in at least one infrastructure fund in the next year, while 22% will be investing opportunistically and 8% have yet to make a decision.
The report, based on a survey of 60 of the world's largest funds conducted in May, concluded that the sector, challenges notwithstanding, was "well and truly on the road to recovery".