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Global Infrastructure Trends in 2013

Global Infrastructure Investors Summit

April 2013

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Preqin Infrastructure

Founded in 2008, Preqin Infrastructure is the most comprehensive source of infrastructureindustry intelligence available today. Our global coverage features profiles of:

Over 1,800 institutional investors actively investing in infrastructure

Over 150 institutional investors considering infrastructure investments

Over 350 infrastructure fund managers

Over 650 unlisted infrastructure funds

Fund performance data

Over 4,400 deals made by unlisted infrastructure fund managers

Placement agents, law firms and investment consultants.

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The Future For Infrastructure Investment?

16% 9% 12%2%

58%

63%

45%

36%

26% 28%

43%

62%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Real Estate Private Equity Hedge Funds Infrastructure

ProportionofSurve

yRespondents

Increase AllocationMaintain Allocation

Decrease Allocation

Source: Preqin Investor Surveys in Real Estate , Private Equity, Hedge Funds and Infrastructure (December 2011 August 2012)

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Annual Infrastructure Fundraising, 2004 2013 YTD

Source: Preqin Infrastructure Online

10

23

33

39

53

26

48

41 41

8

5

10

23

45

40

10

32

22

26

7

0

10

20

30

40

50

60

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD

No. of Funds

Closed

Aggregate Capital

Raised ($bn)

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Infrastructure Fundraising by Region, 2004 2013 YTD


81

121

61 59

111

67

22 20

0

20

40

60

80

100

120

140

North America Europe Asia Rest of World

No. of Funds

Closed

Aggregate Capital

Raised ($bn)

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Infrastructure Fundraising by Manager Location,

2004 2013 YTD


88

126

47

61

108

61

13

38

0

20

40

60

80

100

120

140


No. of FundsClosed

Aggregate Capital

Raised ($bn)

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Infrastructure Fundraising by Fund Size,

2004 2013 YTD


254

46

18

4

66 6859

27

0

50

100

150

200

250

300

Less than $1bn $1-2.4bn $2.5-4.9bn $5bn+

No. of FundsClosed

Aggregate Capital

Raised ($bn)

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Largest Infrastructure Funds Raised

Fund Manager Fund Size (mn) Regional Focus

Global Infrastructure Partners II Global Infrastructure Partners 8,250 USD Global

GS Infrastructure Partners I GS Infrastructure Investment Group 6,500 USD North America, Europe

Macquarie European Infrastructure Fund II Macquarie Infrastructure and Real Assets (MIRA) 4,635 EUR Europe

Global Infrastructure Partners Global Infrastructure Partners 5,640 USD Global

Energy Capital Partners II Energy Capital Partners 4,335 USD North America

EIG Energy Fund XV EIG Global Energy Partners 4,121 USD Global

Alinda Infrastructure Fund II Alinda Capital Partners 4,097 USD North America, Europe

Macquarie Infrastructure Partners Macquarie Infrastructure and Real Assets (MIRA) 4,000 USD North America

Morgan Stanley Infrastructure Partners Morgan Stanley Infrastructure 4,000 USD Global

Highstar Capital Fund III Highstar Capital 3,500 USD Global


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Infrastructure Funds in Market Over Time


47

77

84

107

122

144137

148

39

75

90 9086

93

85

94

0

20

40

60

80

100

120

140

160

Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Apr-13

No. of Funds

Raising

Aggregate Target

Capital ($bn)

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Infrastructure Funds in Market by Regional Focus


36

56

23

3335 34

11

14

0

10

20

30

40

50

60


No. of Funds

Raising

Aggregate Target

Capital ($bn)

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Infrastructure Funds in Market by Fund Status


70

58

15

41

49

31

10

2 1

0

10

20

30

40

50

60

70

80

No Closes First Close Second Close Third Close Fourth Close

No. of Funds

Raising

Aggregate Target

Capital ($bn)

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Infrastructure Funds in Market by Project Stage Focus


59%

83%

78%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Secondary Stage

Brownfield

Greenfield

Proportion of Funds

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Infrastructure Funds in Market by Manager Experience


54%

23%

9%

4%8% 2%

1 Fund

2 Funds

3 Funds

4 Funds

5-9 Funds

10+ Funds

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Infrastructure Funds in Market by Placement Agent Use


49%

51%

Placement Agent Used

Placement Agent Not Used

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Largest Infrastructure Funds in Market

Fund Manager Target Size (mn) Regional Focus

Brookfield Infrastructure Fund II Brookfield Asset Management 5,000 USD Global

EIG Energy Fund XVI EIG Global Energy Partners 4,250 USD Global

Energy & Minerals Group Fund II Energy & Minerals Group 3,000 USD North America

Alinda Global Core Infrastructure Fund Alinda Capital Partners 3,000 USD Global

Morgan Stanley Infrastructure Partners II Morgan Stanley Infrastructure 2,500 USD Global

Macquarie European Infrastructure Fund IV Macquarie Infrastructure and Real Assets (MIRA) 1,500 EUR Europe

First State European Diversified Infrastructure FundColonial First State Global Asset Management/First State

Investments1,500 EUR Europe

Macquarie Infrastructure Partners III Macquarie Infrastructure and Real Assets (MIRA) 2,000 USD North America

UBS International Infrastructure Fund II UBS Infrastructure Asset Management 2,000 USD OECD

Aviva Investors REaLM Infrastructure Fund Aviva Investors 1,000 GBP Europe


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Annual Infrastructure Deal Flow, 2004 2013 YTD


83

126

210

279

308

290

312 315

276

56

0

50

100

150

200

250

300

350

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD

No.

ofDe

als

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Infrastructure Deal Flow by Region, 2008 2013 YTD


20%17%

21% 22%25% 23%

50%60% 51% 47%

50% 52%

13%

11%

12%11%

7% 7%

17%12%

16%20% 18% 18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009 2010 2011 2012 2013

ProportionofT

otalDeals

Rest of World

Asia

Europe

North America

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Average Infrastructure Deal Size, 2004 2013 YTD


200

410

690 690

440

310

390

460475

430

0

100

200

300

400

500

600

700

800

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD

AverageDealSize($mn)

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Infrastructure Deals by Transaction Value,

2010 2013 YTD


38% 41% 38% 40%

43% 37%37% 32%

7%9% 13%

12%

12% 13% 12% 16%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2011 2012 2013 YTD

ProportionofTotalDeals

$1bn+

$500-999mn

$100-499mn

Less than $100mn

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Infrastructure Deals by Industry, 2008 2013 YTD


5%

12%

5%

2%

32%

4%

20%

13%

2%

5%

0%

5%

10%

15%

20%

25%

30%

35%

Education Energy Healthcare Logistics Ren. Energy Telecoms Transport Utilities Waste

Mgmt.

Other

Proportionof

TotalDeals

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Infrastructure Investor Universe


19%

16%

10%

7%7%

7%

6%

4%

4%

4%

4%4%

3%

2%

2%

1%

Private Sector Pension Funds

Public Sector Pension Funds

Insurance Companies

Banks

Asset Managers

Foundations

Endowment Plans

Superannuation Schemes

Fund of Funds Managers

Investment Companies

Family Offices

Wealth Managers

Government Agencies

Sovereign Wealth Funds

Corporate Investors

Other

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Infrastructure Investors by Region


38%

37%

10%

15%

North America

Europe

Asia

Rest of World

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Infrastructure Investors by Current/Target Allocation


25%

47%

18%

9%

1%

7%

45%

31%

15%

2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Less than 1% 1-4.9% 5-9.9% 10-49.9% 50% or More

Proportion

ofInvestors

Allocation (% of AUM)

Current Allocation

Target Allocation

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Infrastructure Investors by Source of Allocation


40%

25%

14%

13%

8%

Separate Infrastructure Allocation

Part of Private Equity Allocation

Part of Real Assets Allocation

General Alternatives Allocation

Other

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Infrastructure Investors by Preferred Route to Market

Source: Preqin Investor Study (August 2012)

72%

5%

36%

32%

4%

21%

60%

16%

44% 45%

7%

13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Unlisted

Funds

Listed

Funds

Direct

Investments

Co-Investments Listed

Securities

Project

Financing

ProportionofSurveyRespondents

Current

Long Term

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Infrastructure Investor Plans For The Next 12 Months

Source: Preqin Investor Study (August 2012)

13%

9%

19%

34%

30%

36%

20%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Undecided

No New Investments

Opportunistic

Direct Investments

Co-Investments

Commitments to More

than One Fund

Commitment to One Fund

Proportion of Survey Respondents

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Outlook

Growing institutional investor demand, confidence and appetite for infrastructure:

- 62% of investors planning to increase allocation over the long term.

- 78% of investors planning to invest in the coming 12 months.

Record number of infrastructure funds on the road:

- 148 infrastructure funds currently raising .

- Targeting $94bn in institutional investor capital.

Key Issues:

Alignment of LP and GP interests.

Liquidity, manager experience and track-record.

Availability and the cost of long-term debt finance.

Asset valuations and competition.

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Documents

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