Written by Deloitte
17 May 2017
The survey was conducted to guage the status of infrastructure market based on macro trends. Previously, Deloitte had conducted a survey in 2013 and interviewed a wide cross-section of infrastructure investors throughout Europe. At that time 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. This survey shows this trend continuing, with direct investors now integrated 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. Key messages emerging include: Infrastructure has proven to be very resilient; Renewables have become a well-established and popular asset class; Iberia and Italy are back as key investor markets; Increasing competition in traditional infrastructure markets; A reduction in target Internal Rate of Returns (IRRs) to 10-12% from 12-14%; 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 Publication Date: 2016