As funds emerge stronger from the economic downturn and direct investors firmly establish themselves in the market, the outlook for the infrastructure investors sector is markedly different from our last survey, when some questioned whether the infrastructure fund model would even last. So how has the sector changed, and in the midst of rising competition and a dynamic risk environment, how is it likely to evolve going forward?

1. DELOITTE INFRASTRUCTURE INVESTORS SURVEY 2013
WHERE NEXT ON THE ROAD AHEAD?
The third edition in this series provides an incisive and comprehensive analysis
of the infrastructure investors sector today, and predictions going forward.
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.
STRONGER & WISER
RESILIENT
THROUGH THE
ECONOMIC
DOWNTURN
7
%
OF INVESTORS’
PORTFOLIOS ARE
NOW ACHIEVING
OR EXCEEDING
TARGET IRRS
GREATER FOCUS ON ASSET MANAGEMENT
THIS STRONG PERFORMANCE REFLECTS AN INCREASING
FOCUS ON ASSET MANAGEMENT TO DELIVER RETURNS
41%
OF INVESTORS HAVE RECRUITED
DEDICATED ASSET MANAGEMENT
TEAMS, WHICH ON AVERAGE NOW
COMPRISE JUST OVER A THIRD
OF THEIR TOTAL WORKFORCE
ASSET PERFORMANCE
Which sub-classes are expected to deliver the highest returns?
16
14
12
Average target IRR
10
8
6
4
2
0
Infrastructure
services
Airports
Ports
Telecoms
Waste
Other
Rail/metro
transport
Roads
Renewables
Water
Other
regulated
utilities
PPP/PFI
THE RISE OF DIRECT INVESTORS
Contrary to expectations, direct investors have firmly established themselves in the
market over the last two years.
WHO DO LARGE FUNDS NOW SEE AS THEIR PRINCIPAL COMPETITION?
44%
31%
DIRECT INVESTORS
25%
OTHER INFRASTRUCTURE FUNDS
TRADE BUYERS
WHAT IS KEEPING INVESTORS AWAKE AT NIGHT?
8%
REGULATORY
35%
8%
TAX
REFINANCING
20%
29%
POLITICAL
BUSINESS/OPERATIONAL RISK
EXTERNAL RISKS
CONCENTRATING INVESTMENT ON CORE MARKETS
Over the next two years, the focus for the majority of investors will largely be on core
infrastructure assets in these ‘safe haven’ geographies, in particular Western Europe.
There is also an increasing appetite to invest outside of Europe, with the exception of
India and China, which have become less attractive as their economies have slowed.
EXITS AHEAD
Average number of assets that investors are considering exiting
Investment realisations have been scarce in recent years, but the number of assets
that funds will be exiting is set to pick up significantly in the short to medium term.
0
0.5
Next
Year
2-3
Years
5-7
Years
1.0
1.5
2.0
2.5
3.0
For more insight and analysis on the state of the infrastructure
investors sector, download the full report.
www.deloitte.co.uk/infrastructureinvestors