Fig.

2: Number of Infrastructure Deals By Region Q3 2010

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Infrastructure Deal Activity Q3 2010 available to infrastructure professionals today. Whether
you’re a GP, LP, fund of funds, placement agent, lawyer, 20 19
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Despite the positive growth in the fundraising market,
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Number of Deals
infrastructure deal volume remains restricted by the www.preqin.com/infrastructure
12
contracted credit markets and inflexible asset valuations. Join our group on Follow us on 10
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The completion of future deals is therefore heavily reliant
on an increased equity-to-debt ratio and a decrease in 8 7

vendors’ asset valuations. 6

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4
2
This will take time, and as a result, a significant increase 2
in the number of deals completed by unlisted fund 0
managers in the remainder of 2010 is unlikely. Europe Asia North Australasia
Deal Activity by Industry America
As expected, core infrastructure industries such as Source: Preqin
As shown in Fig. 1, unlisted infrastructure fund energy, transportation and utilities dominated Q3
managers reported 38 deals in Q3 2010, the lowest 2010 deal activity. As shown in Fig. 3, 15 deals were
quarterly total this year, and the fewest since Q2 2009. Fig. 3: Number of Infrastructure Deals By Industry Q3 2010
completed in the energy sector, 11 in transportation
and three in utilities. Six deals were made in social
Deal Activity by Region infrastructure assets, along with two in waste
Fig. 2 shows the geographic location of the infrastructure management and one in the telecoms industry. 16 15
deals made in Q3 2010. Europe was the most prominent

Number of Deals
14
12 11
region, accounting for 19 of the 38 deals made during Significant Deals Made in Q3 2010 10
the quarter. Seven deals were completed in North A number of significant deals were completed in Q3 8 6
America, and 10 were completed in Asian assets. 6
2010, including the purchase of an 80% stake in the 4 3
2
Two transactions were completed in assets located in Endesa Gas Network by GS Infrastructure Partners II. 2 1
Australasia. The deal was expected to value the stake at around
0

Waste Management
Social

Telecoms
Transportation

Utilities
Energy
€1bn, consisting of approximately €800mn in debt
financing provided by a group of 10 banks including
Santander, Caja Madrid and BBVA. The Endesa
Fig. 1: Quarterly Number of Deals Made by Unlisted network includes 4,050km of gas distribution pipelines
Infrastructure Fund Managers Q1 2007 - Q3 2010 and 859km of gas transport pipelines in Spain.
Source: Preqin
In Canada, Starwood Energy Infrastructure Fund
80 acquired the Sault Ste. Marie Solar Plant 2 (SSM2) Like this report?
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70 67 from Pod Generating Group for a total purchase price
58 of $110mn, including a $30mn equity investment. You can sign up to receive Infrastructure Spotlight, Preqin’s monthly
60 55
Once built, SSM2 will consist of three 10 MW AC solar
Number of Deals

49
52 newsletter containing the latest research on infrastructure investors,
50 48 47 47 45 44 photovoltaic power generation facilities in Sault Ste. performance and fundraising.
38 40 38
40 Marie, Ontario.
29 Visit: www.preqin.com/spotlight
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20 A significant deal made in Asia was the $304mn
investment by a consortium led by Macquarie State Email: info@preqin.com
10
Bank of India Infrastructure Fund for an 11% stake in
0 London: +44 (0)20 7065 5100 New York: +1 212 808 3008
Viom Networks (formerly Quippo-WTTIL). Viom is an
Q1 2007

Q2 2007

Q3 2007

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Q1 2008

Q2 2008

Q3 2008

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Q2 2009

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independent telecommunications company based in

India. The stake was purchased from Quippo Telecom
Infrastructure in August.
Source: Preqin