Dry powder, the money that funds have yet to invest, has risen almost 9 percent this year to $173 billion, according to Preqin. That number is almost certain to expand, with Global Infrastructure Partners and Brookfield Asset Management Inc. both set to raise in the vicinity of $20 billion for their next infrastructure funds.
‘Buoyant’ Market
Not all fundraising has been a cinch. Blackstone Group LP’s effort to amass a potential $40 billion fund has been shy of expectations. One possible reason: The firm’s cornerstone investor is Saudi Arabia’s wealth fund, with which it struck unusual concessions in exchange for the provision of at least half its war chest, conditional upon matching contributions from others. People familiar with the matter have said there has been concern the nation’s outsize participation could result in it seeking to influence the fund’s investments, though New York-based Blackstone has said it retains sole investment discretion.
With four days until the election, polls are giving the Democrats a much higher chance of recapturing the House than the Senate. The result, though, probably won’t even amount to a speed bump for infrastructure investors, according to Tim Bath, managing director and head of infrastructure at investment bank PJ Solomon.
“The market is buoyant from an activity perspective and there are record amounts of capital being raised,” he said. “That trend is expected to continue irrespective of the outcome of the midterms.”
This article provided by Bloomberg News.