European Infrastructure Investors Survey 2016
A positive horizon on the road ahead?
This is the fourth edition of our analysis of the infrastructure investors market. The only study of its kind explores the major trends and drivers across performance, the changing landscape and how funds are responding in this increasingly competitive marketplace.
When we last conducted our survey in 2013, the sector had successfully weathered the economic storm, and investors had a clear focus on core infrastructure assets in the most established jurisdictions for infrastructure investment – particularly in Western Europe. We also saw a shift in the competitive landscape in this marketplace, with direct investors increasingly focusing on these same core assets.
Today, the results of our survey show this trend continuing, with direct investors now bedded in to the core infrastructure market in Western Europe. Infrastructure funds are having to become increasingly innovative in both their deal sourcing and their investment theses to be in a position to acquire assets that will produce their target returns.
Our key findings
Key trends that have emerged in the infrastructure landscape today:
- Infrastructure has proven to be very resilient
- Renewables have become a well-establish and popular asset class
- Iberia and Italy are back
- Increasing competition in traditional infrastructure markets
- A reduction in target Internal Rate of Returns (IRRs)
- Corporate governance has significantly improved
- A focus on investee company management teams
- Regulatory risk continues to increase
- Limited Partner (LP) due diligence - a focus on deal teams
- More exits
- Debt markets remain favourable for infrastructure investors
- Infrastructure debt funds have become more prevalent
About the study
The survey is based on interviews conducted by Deloitte in Q1 2016 with 25 infrastructure investors across Europe as well as the European arms of global infrastructure investors, together holding over £200bn in assets.
About Deloitte's infrastructure investors team
Deloitte advises clients across the infrastructure M&A and fund lifecycle, providing end-to-end support, from the moment the funds are raised and opportunities are identified, to the conclusion of the transaction and onwards through the life of the asset.