LP Scorecard: Global Infrastructure Popular At MainePERS: CORRECTED

Infrastructure funds are popular over at are the cream of the Maine Public Employees Retirement System (MainePERS) crop so far, according to its private market investment summary as of 31 March, 2012.

The pension fund, which was valued at some $10.5 billion as of 30, June 2012, has also made a $75,000,000 commitment to Global Infrastructure Partners II this year, cementing its commitment to both that fund manager (it committed $75,000,000 to Global Infrastructure Partners 2006 vintage) and the infrastructure asset class.

According to alternative asset data provider Preqin, infrastructure fund managers have faced challenging fundraising conditions over the past 18 months. Just six unlisted infrastructure funds reached a final close in Q2 2012, raising an aggregate $2.7 billion, the lowest quarterly total since Q3 2011, according to Preqin. However, 17 funds reached an interim close during Q2 raising an additional $10.5 billion towards their overall targets, which shows improved momentum within the current fundraising market, says Preqin.

But it remains unlikely that 2012 fundraising will outperform the levels seen in 2011, when 38 funds closed raising an aggregate $21.5 billion. There are currently 147 unlisted infrastructure funds on the road targeting $97 billion in fresh investor capital. Many of these vehicles are likely to be raising capital for over two years before holding a final close predicts Preqin stating that over 51% of infrastructure funds in the market have yet to hold any form of interim close.

KKR Infrastructure fund features in Preqin’s top ten unlisted infrastructure funds raised in the last twelve months closing on $1.04 billion in May 2012. This fund also features in MainePERS top ten fund managers below ranking seventh by total value (distributions + value of holdings).

MainePERS has a broad target of 20% to alternative assets which includes a 10% allocation to real estate, 5% to infrastructure and 5% to private equity.

Summit Partners is the only other beneficiary of MainePERS funds so far this year with two commitments of $25,000,000 and $13,150,000 going to Summit Growth Equity VIII and Summit Venture Capital III respectively.

The pension fund also publishes information on its fees and expenses. Its biggest bills are also directed at infrastructure funds. Some $8.2 million has been paid to Global Infrastructure Partners, $5.1 million to Carlyle Infrastructure Partners, $3.2 million to Alinda Infrastructure Fund II and $2.9 million to Cube Infrastructure.

Scroll down below to see the top ten funds to see which fund manager is working hardest to produce the best results for its fees in terms of total value in the MainerPERS portfolio.

Image credit: Photo of suspension bridge structure courtesy of Shutterstock

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(CORRECTION: The total value of a fund represents distributions plus value of remaining holdings. On its own the figure doesn’t say anything about the performance of a fund or how hard the firm is working. The headline and story have been corrected to reflect this fact.)

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