Amsterdam, September 27, 2022: Phenix Capital Group has released today its Impact Report on Real Estate and Infrastructure funds, revealing the number of impact funds targeting Infrastructure has increased. On the other hand, the number of real estate funds peaked in 2019 and 2020, but had a considerable decrease in 2021.
Real Estate and Infrastructure funds represent 17 % of funds from our Impact Database. With this report, Phenix Capital Group provides an overview and analysis of the development of these asset classes in the last years.
KEY REPORT TAKEAWAYS
· The number of impact funds targeting Infrastructure has increased on average, mostly since 2017. For Real Estate, the number of funds launched peaked in 2019 and 2020, followed by a considerable decrease in 2021.
· In general, funds targeting the infrastructure asset class have higher capital commitments and target sizes than those targeting Real Estate. This is perhaps unsurprising considering that Infrastructure projects are often larger in size and resource commitments than Real Estate projects.
· These two asset classes are driving capital commitments mostly towards developed markets.
Regarding the Sustainable Development Goals, there is a clear preference for climate-related SDGs. Real Estate has raised the most capital towards SDG 11 (Sustainable Cities & Communities). For Infrastructure, most capital commitments are towards SDG 7 (Affordable and Clean Energy).
Currently, Private equity is the asset class that is fundraising the most towards Circular Economy. There are open and evergreen funds available in all regions, with Western Europe and North America having the largest total fundraising targets.
Besides top-down data from the Phenix Impact Database, the report also features industry players’ interviews:
· Rhiann Gray, Head of Commercial Asset Management and ESG (Environmental, Social and Governance) for the PE/Infrastructure Team at Impax Asset Management.
Impax Asset Management has pioneered investment in the transition to a more sustainable economy and today is one of the largest investment managers dedicated to this area. "We believe capital markets will be shaped profoundly by global sustainability challenges (..). These trends will drive growth for those companies we believe are well-positioned and create risks for those unable or unwilling to adapt", they alert.
· Annabel Jennings, ESG analyst at Insight Investment, which is a part of BNY Mellon Investment Management.
BNY Mellon Investment Management is one of the world’s largest asset managers with $1.9 trillion in assets under management. It is also a division of BNY Mellon, which has $43.0 trillion in assets under custody and/or administration as of June 30, 2022.
“An increasing number of green bonds are targeting green buildings UoP. Of the bonds that Insight have assessed since 2020, green buildings are the 3rd most common UoP category. Bonds targeting green buildings are expected to become 40% of the green bonds market (CBI)”, says Annabel.
About Phenix Capital Group
Phenix Capital Group is an impact investment consultant that enables institutional investors to make impact investments. Founded in 2012, the company has been dedicated to building a solid knowledge base of the impact investing industry, educating asset owners, and catalysing institutional capital to impact investing.
Phenix Capital’s Impact Database provides investors with access to and intelligence on the impact fund market opportunities available to them. Three main variables are used to construct, monitor and update the dataset: 1) funds considered to have an impact proposition; 2) institutional scale, and 3) target market-rate returns. The Impact Database includes a detailed overview of more than 2,050+ impact funds.
For more information or interview requests, please contact our team at email@example.com or call + 31 20 240 27 31.
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