The Facts German Infrastructure Fund Market alternative assets. intelligent data.

German Infrastructure Fund Market

The unlisted infrastructure fund market targeting Germany, either

Key Stats: solely or as part of a wider geographic focus, remains relatively small,
with data from Preqins Infrastructure Online service revealing only
18 unlisted vehicles have reached a final close since 2010 (Fig. 1).
Fundraising has declined from six funds closing in 2013 raising an
382mn Average size of infrastructure deals
completed in Germany since 2007.
aggregate 2.7bn, to three funds closing last year raising 700mn;
so far this year there have been no unlisted infrastructure funds
closed targeting Germany. The largest Germany-focused fund
closed since 2013 is AXA Infrastructure Generation III, managed
by France-based Ardian; the fund raised 1.5bn for investments in
infrastructure entities whose main purposes are to finance, build,
Number of deals completed in
300
operate, maintain, refurbish or develop infrastructure projects
Germany since 2006 with full profiles located in European countries.
on Infrastructure Online.
The Deals module on Preqins Infrastructure Online features
information on over 11,700 infrastructure deals, including
information on over 460 completed transactions in Germany. As
Aggregate assets under shown in Fig. 2, the number of completed deals in Germany almost
3.4tn management of Germany-based
investors.
halved from 50 in 2008 to 27 in 2014; however, reported aggregate
deal value has fluctuated from a low of 1.3bn in 2009 to a high of
10.7bn in 2012, with last years total standing at 5.3bn.

Renewable energy accounts for the majority (57%) of transactions

Proportion of deals completed in
57% Germany since 2007 that are in the
since 2012, while transactions in the utilities (14%) and transport
(7%) sectors also make up notable proportions (Fig. 3). Since
renewable energy sector. 2013, the largest German transaction was the 1.9bn joint venture
by Copenhagen Infrastructure Partners I and TenneT in February
2014 for DolWin3, which involved the construction of a 900MW
offshore converter station and grid connection for wind farms
located in the south-western part of the German North Sea. As a
part of the deal, Copenhagen Infrastructure Partners I agreed to
provide an equity investment of 384mn in return for a 67% stake,
with TenneT acting as developer.

Fig. 1: Annual Germany-Focused Unlisted Infrastructure Fig. 2: Number and Aggregate Value of German Infrastructure
Fundraising, 2010 - 2015 YTD (As at 27 May 2015) Deals, 2007 - 2015 YTD (As at 27 May 2015)

7 60 12

6 50
6 50 47 10
Aggregate Deal Value (bn)

40
5 40 8
No. of Funds
No. of Deals

35 34
Closed 33
4
4 30 29 6
27
Aggregate
3 3
3 2.7 Capital
20 4
Raised (bn)
1.9 2
2
10 2
5
1 0.8 0.7
0 0
0.2 2007 2008 2009 2010 2011 2012 2013 2014
2015
0 0.0
0 YTD
2010 2011 2012 2013 2014 2015 YTD No. of Deals Reported Aggregate Deal Value (bn)
Source: Preqin Infrastructure Online Source: Preqin Infrastructure Online

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The Facts German Infrastructure Fund Market alternative assets. intelligent data.

Preqins Infrastructure Online service contains detailed profiles for are also fairly numerous; each account for 16% of investors based
over 2,200 institutional investors targeting infrastructure, including in this region. In terms of assets under management (AUM), 68%
67 based in Germany. Insurance companies make up a quarter of of investors possess AUM of 10bn or more, with no institutions
Germany-based institutions, demonstrating their prominence in the holding less than 1bn in assets investing in infrastructure (Fig. 6).
region (Fig. 5). Asset managers and private sector pension funds

Fig. 3: Breakdown of German Infrastructure Deals by Industry, Fig. 4: Breakdown of German Infrastructure Deals by Project
Deals Completed 2012-2015 YTD (As at 27 May 2015) Stage, Deals Completed 2012-2015 YTD (As at 27 May 2015)

7% Renewable Energy 7%
4%
5% Utilities

6% Secondary Stage
Transport
Greenfield
7% Natural Resources
40% 53%
57% Brownfield
Education Facilities

14% Government Buildings

Other

Source: Preqin Infrastructure Online Source: Preqin Infrastructure Online

Fig. 5: Breakdown of Germany-Based Infrastructure Investors by Fig. 6: Breakdown of Germany-Based Infrastructure Investors by
Type Assets under Management

45%
Insurance Company 40%
40%
6%
3% Asset Manager 35%
3%
Proportion of Investors

25%
4% Private Sector Pension 30% 28%
Fund
Family Offices 25%
12%
20%
Bank 16% 16%
15%
Public Pension Fund
10%
16%
13% Corporate Investor 5%
0%
Investment Bank 0%
16% Less than 1-4.9bn 5-9.9bn 10-49.9bn 50bn or
Other 1bn More
Assets under Management
Source: Preqin Infrastructure Online Source: Preqin Infrastructure Online

Fig. 7: Infrastructure Investors by Source of Infrastructure Fig. 8: Preferred Route to Market of Germany-Based
Allocation: Germany-Based Investors vs. All Other Investors Infrastructure Investors

70% 90% 85%

59%
60%
Proportion of Investors

80%
Germany-
50%
Based 70%
Proportion of Investors

40% 38% Investors

60%
30% 24%23% All Other
19% 19% 50%
20% Investors
42%
11%
10% 5% 40%

0% 30%
Equity Allocation

Other
Infrastructure

Assets Allocation
Part of Private
Allocation
Separate

Part of Real

20%

10% 5%
0%
Unlisted Direct Listed
Source of Allocation Route to Market
Source: Preqin Infrastructure Online Source: Preqin Infrastructure Online

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The Facts German Infrastructure Fund Market alternative assets. intelligent data.

A significant 59% of Germany-based infrastructure investors
access the asset class through a separate infrastructure allocation
(Fig. 7). In comparison, when looking at investors based elsewhere,
just 38% allocate to infrastructure via a separate bucket, with a
greater proportion (42%) investing as part of either a private equity
or real assets allocation. In terms of route to market, there is a
clear preference among Germany-based infrastructure investors
for investing through unlisted vehicles: 85% gain exposure through
this route (Fig. 8).

Fig. 9: Sample of Germany-Based Investors Targeting Unlisted Infrastructure Funds in the Next 12 Months

Investor Type City Investment Plans in the Next 12 Months

Bavarian Pension Chamber
Continentale Insurance Group
Talanx Asset Management
Looking to commit 1bn to four or five unlisted infrastructure funds in
Public Pension Fund Munich
2015. The pension fund will invest globally across all industries.
Will target unlisted infrastructure on an opportunistic basis, but intends to
Insurance Company Dortmund
add one fund of funds vehicle to its portfolio in 2015.
Expects to continue investing in infrastructure on an opportunistic basis,
Asset Manager Cologne and is likely to consider unlisted fund commitments and direct equity/debt
financing opportunities, primarily within Europe and North America.
Source: Preqin Infrastructure Online

Fig. 10: 10 Notable German Infrastructure Deals Completed in 2013 - 2015 YTD (As at 27 May 2015)

Total Deal
Asset Investor(s) Transaction Date Industry
Size (mn)
DolWin3 Copenhagen Infrastructure Partners, TenneT Feb-14 Power Distribution 1,900
Industry Pension Insurance, Marguerite Adviser,
Butendiek Offshore Wind Farm Pensionskassernes Administration, Siemens Feb-13 Wind Power 1,400
Financial Services, wpd
Gode Wind Farm I DONG Energy Nov-13 Wind Power 1,247
AviAlliance Public Sector Pension Investment Board May-13 Airports 1,100
Amrumbank West Wind Farm E.ON Jan-14 Wind Power 1,000
EnBW Baltic 2 Wind Farm Macquarie Bank Jan-15 Wind Power 720
A7 Bordesholm-Hamburg DIF, HOCHTIEF Concessions, Unidentified Investor/s Jun-14 Roads 600
Industry Pension Insurance, Lrernes Pension,
Gode Wind Farm II Medical Doctors' Pension Fund, Pensionskassernes Jul-14 Wind Power 600
Administration
Schleswig-Holstein University
BAM PPP, DIF, PGGM, VAMED Sep-14 Hospitals 520
Hospital
Colonial First State Global Asset Management/First Natural Resources
EVG Thueringen Oct-14 400
State Investments Pipelines
Source: Preqin Infrastructure Online

Fig. 11: Top Five Germany-Focused Unlisted Infrastructure Funds to Hold a Final Close, 2013 - 2015 YTD (As at 27 May 2015)

Fund Firm Final Close Size (mn) Final Close Date

AXA Infrastructure Generation III Ardian 1,450 Mar-13
DIF Infrastructure III DIF 800 Mar-13
Clean Energy Fund Europe II Glennmont Partners 500 Sep-14
Zouk Renewable Energy & Environmental
Zouk Capital 220 Sep-14
Infrastructure Fund II
Bouwfonds European Real Estate Parking Fund II Bouwfonds Investment Management 187 May-13
Source: Preqin Infrastructure Online

Data Source:

Access comprehensive information on all aspects of the infrastructure industry on Preqins Infrastructure Online.

Constantly updated by our team of dedicated research analysts, the service features in-depth data on fundraising, fund managers,
institutional investors, net-to-investor fund performance and much more.

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