Infrastructurean Overview of Trends in Select Sectors and Markets April 2009

InfrastructureAn Overview of Trends in Select Sectors and Markets April 2009

Sector Snapshot

nfrastructure is among the sectors poised to benefit during the global financial Estimated Annual Emerging Markets crisis. Private investment will play a growing role over the medium term, as gov- Infrastructure Spending 2008–2011 ernments in emerging economies look to leverage trade surplus-derived reserves I Country/Region Projected Ann. into stimulus spending focused in large part on sorely needed and long overdue infra- Spending (US$B) structure investment. Recently announced stimulus packages across several larger China 725 emerging markets include spending plans averaging US$20 billion annually over the GCC 400 next 3-5 years. According to Merrill Lynch, infrastructure expenditure (public and pri- Russia 325 vate) in the emerging markets is projected to grow by 80% over the next three years, India 240 with an estimated US$2.2 trillion to be spent annually. China, the Middle East and Brazil 225 Russia account for 70% of the projected total. Mexico 120 Governments are increasingly seeking private capital via partnerships (public-private Turkey 65 partnerships, or PPPs) to lower their risk exposure and maximize returns on taxpayer South Africa 60 dollars. Private equity investors are not only pursuing these newly available project Eastern Europe 45 development and finance opportunities, but also injecting a growing pool of capital Total EM Sampling 2,205 into infrastructure-related sectors—particularly trade (e.g., ports and logistics), com- Source: Merrill Lynch munications (e.g., cell phone towers), engineering & construction, and utilities (e.g.,

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Investment Commitments to Infrastructure with Private Equity Funds Raised for Infrastructure, Private Participation in Emerging Markets, Emerging Markets vs. Developed Markets, 2003–2007 (US$B) 2005–Q1 2009 (US$B)

200 35

150 25

20 100 US$ Billions 15 US$ Billions

10 50

0 0 2003 2004 2005 2006 2007 2005 2006 2007 2008 Q1 2009

Africa Middle East LatAm & Carib. CEE & CIS EM Asia Developed Markets Funds Emerging Markets Funds

Source: World Bank PPI Project Database. Note: Reflects total public investment Source: EMPEA, Preqin, Probitas Partners. that includes private investment component (e.g., partnership).

Comparative Infrastructure Indicators for a Sampling of Emerging Market Countries, 2009

Electric Power Access to Access to Treated/ Access to Sanitation Total Telephone Consumption Electricity Clean Water Services Subscribers* (kwh per capita) (% of population) (% of population) (% of population) (per 100 inhabitants) China 987 99% 77% 44% 57 India 380 43% 86% 33% 13 Indonesia 411 53% 77% 55% 27 Egypt 1,073 94% 98% 70% 34 South Africa 3,860 66% 88% 65% 82 Mexico 1,660 NA 97% 79% 62 Brazil 1,776 95% 90% 75% 68 Russia NA NA 97% 87% NA Average for Upper 2,621 83% 92% 84% 88 Middle Income Countries

Source: World Bank and Public-Private Infrastructure Advisory Facility (PPIAF), PPI Project Database. *Telephone subscribers include fixed line and mobile users.

water treatment, power generation and distribution). Private Capital Raised by Infrastructure Focused Private equity fundraising for infrastructure investment in emerging Equity Funds, by Geographic Focus, 2008 markets grew 147%, from US$3.4 billion raised in 2007 to Asia US$8.4 billion in 2008; capital raised by developed market Multi-regional funds fell 26% during the same period, from 2007’s total of US$27.9 billion to US$20.5 billion in 2008. Governments Middle East

alone are unlikely to supply the entire US$7 trillion to be CEE & CIS spent in emerging economies over the next three years, leav- LatAm & Carib ing a clear role for private equity to help fill the gap between Africa capital supply and demand.

Source: EMPEA. / Note: Includes all funds with closes in 2008. EMPEA Insight

Editorial Director Jennifer Choi [email protected] Fundraising and Writing and Research Alexander Adrian [email protected], Harri- son Moskowitz [email protected], Holly Freedman freed- Investment Trends [email protected], Nadiya Satyamurthy [email protected] Infrastructure is one of the fastest growing sectors for private Production Manager Cristiane Nascimento [email protected] equity funds focused on the emerging markets. Along with a Advertising Opportunities number of dedicated infrastructure vehicles launched since EMPEA Insight offers readers an overview of the data and drivers 2007, the majority of generalist emerging market private eq- behind investment trends in emerging markets private equity. Each issue of EMPEA Insight provides an opportunity for a single uity funds now include infrastructure sectors in their invest- exclusive back page advertisement. Issue-specific placements are ment mandates. on a first come, first served basis. For a list of upcoming issues In 2005, only US$5.2 billion was raised globally for infra- and more information about advertising opportunities and rates, contact Cristiane Nascimento at [email protected]. structure funds. By 2008, that number had grown more than About EMPEA five-fold to US$28.9 billion. Funds raised for emerging market . The Emerging Markets Private Equity Association is a broad-based infrastructure opportunities nearly quadrupled from US$2.3 membership organization founded in 2004 that focuses on the billion to US$8.3 billion during the same period, due both to emerging private equity markets of Africa, Asia, CEE, Russia/CIS, the rising number of specialist vehicles as well as the growing Latin America, and the Middle East. sizes of the funds coming to market. continued on page 3

According to industry source Preqin, 27% of the infrastructure private equity funds worldwide that closed in 2007 and Asia 2008 were raised by first-time fund managers, and 42% by Asia drew the most capital for infrastructure in 2008, with fund managers new to infrastructure. Among the 210 emerg- 11 funds raising a total of US$4.7 billion, representing over ing market funds that raised capital in 2008, 29 funds were half of the total raised by infrastructure-focused funds for the targeting infrastructure, including 18 specialist funds and 11 emerging markets. According to Merrill Lynch, Asia also repre- funds with infrastructure as a primary or secondary focus. sents the largest portion of projected infrastructure spending among emerging economies, with India and China together Recently closed emerging market infrastructure funds aver- accounting for US$965 billion, or 44% of the total projected age approximately US$400 million, compared with US$1.6 over the next three years. Areas of particular need in Emerg- billion among global infrastructure funds; however, fund siz- ing Asia include power, water treatment and sanitation, and es in emerging markets are catching up. On average, emerg- telecommunication infrastructure. ing market infrastructure funds in the market in 2009 are targeting US$1.2 billion, driven by a number of funds with Even at lower GDP growth in 2009—currently, projected at fundraising goals exceeding US$1 billion. Globally, an es- 5–6%, down from 9%—China’s electricity capacity growth re- timated US$102 billion is being raised for infrastructure in quirements are estimated at roughly 8–10% annually, or the 2009, with emerging market funds accounting for as much equivalent of building the UK’s electricity system each year as US$30 to US$40 billion of that collective target. for the foreseeable future. Between 2008 and 2010, China is expected to increase its power generating capacity by 40%, Investment by private equity firms in infrastructure projects on top of an 80% increase in capacity between 2000 and and related sectors in emerging markets totaled at least 2008. While the Chinese government currently limits foreign US$3 billion in 2008, based on EMPEA’s sample of 59 deals. investment in conventional power generation projects related The appetite for infrastructure investments is expected to to construction and operation of its power grid due to national grow in 2009, as infrastructure asset prices continue to fall security concerns, alternative and renewable energy, particu- from bubble levels and as governments further refine and roll larly wind power generation, is emerging as a sector where out PPP programs. In addition, infrastructure is one of the foreign investors have been able to establish a foothold. few sectors for which bank financing remains accessible— often through local banks unaffected by the global financial Pan-Asian infrastructure specialists seeking investment op- crisis. Fund managers report that infrastructure deals are portunities on the mainland include JP Morgan’s US$1.5 bil- still comparatively easy to finance, although investments in lion Asian Infrastructure & Related Resources Opportunity infra-related operating companies (rather than projects or as- Fund and the recently launched US$1 billion Standard Char- sets) still require little to no leverage. tered IL&FS Asia Infrastructure Growth Fund. A number of government-sponsored industrial investment initiatives are Distribution of Projected Global Infrastructure also supplying the sector with capital—for example, the China Spending, (2005–2030), Total Approx. US$40 Trillion Science and Merchants Capital Management Fund. China- dedicated generalist vehicles with an active infrastructure in- Water US & Canada (US$23T) (US$7T) vestment profile include Beijing Enterprises Group’s US$150 Power Europe (US$9T) million Bluewhale Fund. Chinese insurer Ping An is poised (US$10T) Road & Rail to launch its first private equity fund, initially capitalized at Asia & Oceania (US$8T) (US$16T) Air & Sea US$2.9 billion and investing primarily in infrastructure. Ping LatAm & Carib. (US$2T) (US$7T) An’s portfolio already includes infrastructure projects such

Africa as a high-speed rail project linking Beijing and Shanghai. (US$1T)

Middle East India’s enormous infrastructure needs are estimated at half (US$1T) 0% 20% 40% 60% 80% 100% a trillion dollars over the next five years, with private investors expected to provide up to 30% of that total. Relative to Source: Ennis Knupp & Associates.

Note: Inclusive of both public and private infrastructure investment. continued on page 4

Sampling of PE-Backed Exits

Firm Name Company Sector Investment Market Exit Type Exit Date Equity Year Stake (%) 3i Group Mundra Port and Special Port Operator 2006 India Share Sale Mar-09 1.4% Economic Zone

Abraaj Capital National Air Services Aviation Services 2006 Saudi Arabia Strategic Sale Jun-08 30% Amwal Al Khaleej Dubai Contracting Co. Engineering & Con- 2008 United Arab Strategic Sale Nov-08 49% struction Emirates Citi Venture Capital National Logistic Co. Logistics 2005 Russia Strategic Sale Aug-08 90% International (CVCI) Citi Venture Capital Oeste Participacoes Transport (Subway) N/A Brazil Strategic Sale Dec-08 N/A International (CVCI) EMP Global Transredes S.A. Power Generation N/A Bolivia Strategic Sale Apr-08 9.7% and Distribution Morgan Stanley China Shanshui Cement Engineering and N/A China IPO Jul-08 N/A Construction Penta Investments Prague Airport Project Aviation N/A Czech Republic Strategic Sale Dec-08 N/A

Temasek Holdings Gateway Distriparks Logistics 2004 India Strategic Sale Mar-09 5.6% The Carlyle Group Universidad Latinoameri- Education 2005 Mexico Secondary Aug-08 65% cana S.C. VinaCapital Investment Binh Chanh Construction Engineering & Con- N/A Thailand IPO Mar-09 N/A Management Ltd. struction

other emerging markets, India’s infrastructure is deemed ture Financing Initiative led by IDFC Asset Management, with grossly inadequate for sustained economic growth. The World Blackstone Group, Citigroup and India Infrastructure Finance Bank’s Public-Private Infrastructure Database estimates that Company (IIFC) as partners. However, recent reports indicate only one-third of Indians have access to adequate sanitation that over half of proposed PPP roads projects have yet to re- services and less than one half have access to electricity. ceive bids from private investors, due in part to government Furthermore, only 13 out of 100 people are telephone sub- delays in establishing standard concession agreements. scribers including both mobile and land lines. Over a dozen Many projects stand unfinished, awaiting private capital yet India infrastructure funds are currently in the market. to come. Nevertheless, Indian infrastructure specialists as- sert that these are opportunities worth pursuing, where the Veteran infrastructure specialists such as IL&FS Investment necessary permitting and planning work is complete, making Managers, IDFC Project Equity and IDFC Private Equity, and such deals far quicker to execute. ICICI Ventures are joined by both a growing roster of global players developing India-centric vehicles, as well as a num- India’s telecom infrastructure has attracted significant private ber of homegrown infrastructure-focused funds. Global in- equity interest to date, including one of the largest private frastructure players turning to the subcontinent include 3i, equity transactions concluded thus far in 2009, Providence with the US$1.2 billion India Infrastructure Fund closed in Equity Partners’ US$428 million investment in Aditya Birla 2007, JP Morgan, raising a US$2 billion India vehicle, and Telecom (ABTL), which holds a 16% stake in Indus Towers, the Morgan Stanley Infrastructure Partners, whose US$4 billion world’s largest mobile tower operator. Additionally, in 2008, pan-Asian vehicle will include a significant allocation to India. KKR invested US$250 million in leading telecom provider Macquarie Bank and the State Bank of India have launched Bharti Infratel. Engineering and construction deals are also a US$2 billion joint venture, the India Infrastructure Oppor- numerous, with recent examples such as Eredene Capital’s tunities Fund. Homegrown funds in the market include the US$8.7 million investment in Apeejay Infra-Logistics and Al- US$300 million 2i Indian Infrastructure Development Fund, cazar Capital’s US$9 million injection in Bumi Geo Engineer- India’s first shari’ah-compliant infrastructure fund launched ing. Within the power generation space, recent investments in 2007 and affiliated with Oman-based Amwal Investment. include IDFC’s US$75 million investment in Essar Power and River Valley Hydro Venture’s US$60 million investment in Am- India is attempting to lead the way in the public-private partner- ritial Venture. ship model, leading off with the US$5 billion India Infrastruc- continued on page 5

Sampling of Recent Investments

Fund Manager Company Tx Value Sector Market Date Equity (US$m) (%) Actis Ambow Education 103 Eductation/training China Oct-08 N/A SAIF Partners TransInfo Technology 15 Transportation infrastructure China Jul-08 13.2% Tribeca Partners S.A. PetroLatina 25 Energy exploration & production Colombia May-08 35% Emerging Capital Partners (ECP) Finagestion 30 Power generation & distribution Cote d'Ivoire Dec-08 N/A Vienna Capital Partners Kapsch Telematic Services GmbH N/A Toll operator Czech Republic Nov-08 38% Advent International Aeropuertos Dominicanos Siglo N/A Airport operator Dom. Republic Sep-08 100% MENA Infrastructure Fund Alexandria Int'l Container Terminals N/A Ports developer/operator Egypt Apr-08 N/A 3i Group Krishnapatnam Port Co.Ltd. 161 Seaports India Aug-08 26% Alcazar Capital Bumi Geo Engineering Pvt. Ltd. 9 Engineering & construction India Jul-08 N/A AMP Capital Investors Gayatri Infra Ventures Ltd (GIVL) 50 Transportation infrastructure India Aug-08 N/A Axis Private Equity Harish Chandra India 30 Railways India May-08 25% Eredene Capital Apeejay Infra-Logistics (AILPL) 9 Engineering & construction India Jul-08 50% HDFC Bank Ltd. Intl' Asset Reconstruction Company 18 Engineering & construction India Oct-08 20% ICICI Venture Funds Sahyadri Hospitals Ltd. 36 Hospitals India Jan-08 N/A IDFC Project Equity Essar Power 75 Power generation & distribution India Mar-09 N/A Kohlberg Kravis Roberts (KKR) Bharti Infratel 250 Telecom infrastructure India Feb-08 2% Providence Equity Partners Aditya Birla Telecom (ABTL) 428 Telecom infrastructure India Jan-09 16.1% Abraaj Capital Karachi Electric Supply Company 361 Power generation & distribution Pakistan Apr-09 50% CapMan Plc. Region-Avia Airline 50 Aviation & Aerospace Russia Aug-08 N/A Kingdom Zephyr Africa Buildworks 20 Power infrastructure South Africa Mar-09 30% ADCB Macquarie Corp Finance ZonesCorp 188 Economic zones UAE Feb-09 N/A EFG-Hermes Private Equity Gulf Housing Solutions (GHS) 65 Housing facilities developer UAE Sep-08 N/A VinaCapital Inv. Mgmt. NC-55 Infrastructure 6 Telecom infrastructure Vietnam Oct-08 40%

Other Emerging Asia economies also face daunting infrastruc- ing projections is more so a reflection of government funding ture requirements, notably Indonesia. Its topographical char- available for infrastructure investment than of the need. Of the acter, comprising 17,000 islands, presents particular chal- Russian government’s planned RUB 2.9 trillion (US$80 billion) lenges for communications and transportation. Only 27% of stimulus package, roughly 2%, or RUB 70 billion, is earmarked the Indonesian population are telephone subscribers. While for transportation investment alone. Approximately US$6 bil- nearly 70% of freight on Indonesia’s islands is transported lion will be spent on infrastructure in preparation for hosting by truck, only 49% of district roads are deemed to be in rea- the 2014 winter Olympics in Sochi. Prime Minister Putin’s sonable condition according to the World Bank. In addition, US$1 trillion plan to modernize Russia’s infrastructure has the market’s power needs are underserved, with electrical been tabled since the onset of the financial crisis. In 2008, consumption of only 411 kWh per capita versus an average US$42 billion or 15% of government spending went to infra- of 1,230 kWh for the Asia Pacific region and an average of structure, expected to fall to 5–7% in 2009. 8,769 kWh in OECD countries. Eurocapital Peregrine Securi- Funds targeting infrastructure opportunities in the Central ties Fund (raising US$100 million) and the PT Dhanawibawa and Eastern European and CIS regions tend towards general- Arthacemerlang’s (DWAC) Jawa Barat Fund are both targeting ist strategies, although a handful of specialized vehicles have Indonesian infrastructure opportunities. been launched in the Russian market. One example is the Central Eastern Europe & CIS joint venture between Macquarie and Renaissance Capital, a US$750 million fund targeting infrastructure projects. Troika Merrill Lynch estimates that US$325 billion or 15% of the total Capital Partners’ US$1 billion infrastructure fund will execute infrastructure spending in the emerging markets will be spent PPP-style investments in consumer-related infrastructure, e.g., annually in Russia over the next three years and US$45 bil- utilities, water supply and waste management. lion will be spent in Eastern Europe. The discrepancy in spend- continued on page 6

projects by 2012, 45% of which is expected to be supplied Latin America & Caribbean by the private sector. Although private equity’s role in the Na- High commodity prices and increased trade have sharpened tional Infrastructure Program (PNI) remains unclear, one en- the need for investment in transport and power assets in Lat- couraging sign is the fact that the lead administrator for the in America. The infrastructure investment need is most pro- PNI infrastructure fund (Fonadin) was formerly deputy direc- nounced in Brazil. The Brazilian highway network of 79,000 tor of development for the Mexican fund of funds, NAFINSA. miles—of which only 12% is paved—is one-fifth as large as In Colombia, the Andean Development Corporation (CAF) and Japan’s, which has only 4% the land mass of Brazil. In 2007, the Inter-American Development Bank (IDB) have selected ships waited on average 3.15 days at the Santos Alamoa eth- Ashmore Investment Management and Inverlink to manage a anol terminal, the outlet for 80% of Brazil’s ethanol exports. PPP-style infrastructure fund, with the aim of channeling up This wait is expected to rise to 14.32 days in 2009. Utilities to US$22 billion into more than 100 infrastructure projects to service Brazil’s growing middle class represent another op- in sanitation, telecom, transport, energy and logistics. The portunity for private equity, particularly water and sewage, as fund’s backers include the Colombian government, Bancol- well as telecommunication. dex, Corporación Andina de Fomento and the IDB. Brazil leads the region in infrastructure-focused funds. Re- cent vintages include the ABN AMRO Brazilian Infrastructure Middle East Investment Fund, which raised US$450 million in 2006, and The Middle East has enormous infrastructure requirements 2006’s AG Angra Partners US$321 million fund, a joint ven- related to rapid growth and modernization as well as the di- ture between one of Brazil’s leading construction companies versification of economies. Population explosions in the Gulf Andrade Gutierrez Group and asset manager Angra Partners. countries, especially the UAE and Qatar, have intensified the More recently, Darby Overseas added to its infrastructure need for greater power and water infrastructure. The Middle portfolio in the region with a US$236 million joint venture East is second only to Asia for projected infrastructure spend- with local GP Stratus Group, the Brazil Mezzanine Infrastruc- ing over the next three years, estimated at US$400 billion ture Fund (BMIF). annually. Local petroleum dollars are being supplemented by In Mexico, transportation is a particular area of investment financing from GCC banks, although the sector has to date focus. An estimated US$27 billion will be invested in road relied less on leverage than have Western markets. Govern-

Sampling of Government Stimulus Infrastructure Spending Plans, As of Mid-January 2009

Government Stimulus Infrastructure Plans Projected Time Frame Estimated Spending on Infrastructure (US$B) China Nearly half of US$600 billion stimulus package earmarked for infrastructure: NA 200-400 railways, airports, power, oil & gas, post-earthquake rebuilding. India Independent of US$4 billion stimulus, US$22 billion earmarked for India Infra- NA 22 structure Finance Company PPP program: highways, ports, power. Indonesia Communication and transport infrastructure (including ports and shipping). NA 9.2 Egypt One third of US$3 billion stimulus plan: water and sewer projects. NA 1 South Africa Power, transport (harbors, ports and railways), pipeline construction. 3 years 60 Mexico National Dev't Program: transport, flood control, ports, water, 5 years 200 telecommunications. Brazil Plans to extend Program of Growth Acceleration (PAC) of 2007: transport, NA 213 energy, sanitation, urban transportation, electricity and water utilities. Russia 2% of US$80 billion stimulus: railways, aviation. Other: utilities, schools, 1 year 2+ healthcare. Saudi Arabia Half of the US$400 billion stimulus plan. 5 years 200 UK US$4.5 billion of US$30 billion stimulus. 2 years 4.5 US American Recovery and Reinvestment Act: US$180 billion for transport, 2 years 180 health IT, clean energy, schools/hospitals, and water treatment.

Source: Foreign Affairs and International Trade Canada, various government websites. continued on page 7

ments in the Gulf region are keenly interested in projects that Funds focused on infrastructure investment in Africa tend to will allow for economic diversification beyond the oil sector. be significantly smaller, averaging less than US$500 million. Although the bulk of infrastructure investment in the region In 2007, the Middle East accounted for over 90% of the pri- to date has come through generalist vehicles from managers vate equity funds raised for infrastructure in the emerging who have built some sector expertise, such as EMP Global markets, subsequently falling to 15% of the total in 2008. and Emerging Capital Partners, specialized funds are begin- There are at least seven funds currently in the market fo- ning to enter the market. At least 10 funds that are either cused on the Middle Eastern infrastructure opportunity, half focused on Africa or include Africa in their mandates are cur- of which are targeting US$1 billion or more, with strategies rently raising as much as US$5 billion for infrastructure op- ranging from healthcare and education to energy. These in- portunities, with particular appetite for telecommunications clude the US$1 billion ADCB Macquarie Infrastructure Fund and power generation and distribution. Region-focused funds and the US$2 billion Gulf One Infrastructure Fund. One of include InfraCo’s Sub-Sahara Infrastructure Fund seeking to the largest infrastructure funds raised for the region to date, raise US$200 million, the US$105 million Moroccan Infra- Abraaj Capital’s US$2 billion Growth & Infrastructure Fund structure Management Fund (MIF), and Prescient Fieldstone has already completed a number of investments, including Investment Management’s African Energy Infrastructure a 50% stake in Karachi Electric Supply Company in Pakistan. Fund, with a US$500 million target. Dubai-based Millennium Private Equity closed two of five sector-focused funds in 2008: an Energy Fund and a Telecom Several multi-regional infrastructure funds in the market in- Fund at US$200 million and US$150 million, respectively. clude Africa in their mandate, among them the Actis Infra- structure Fund II, with a US$1 billion target, and Alcazar Capi- In September 2008, EFG-Hermes Private Equity invested in tal Partners Fund, which closed on US$300 million in 2008. Gulf Housing Solutions (GHS), a corporate housing facilities Mubadala Infrastructure Partners, backed by the Abu Dhabi construction company based in the United Arab Emirates. In government among others, will target both hard and soft in- November 2008, Amwal Al Khaleej exited Dubai Contracting frastructure in North Africa and the Middle East. Company through a strategic sale of its 49% equity stake. Many of the infrastructure deals getting done, particularly in Another interesting development has been the entry of gov- the UAE, are in the engineering and construction space—not ernment-backed infrastructure investment initiatives from surprising given that an estimated one-fourth of the world’s other countries seeking to solidify trade relationships and tap cranes are located in Dubai alone. into Africa’s comparative natural resource wealth. One such example, the China Africa Development Fund, backed by the Africa China Development Bank, is the first fund based in China tar- Africa’s infrastructure needs are wide-ranging, from water geting equity investments in Africa and will gradually grow to treatment to transportation to power. The 48 countries of Sub- a corpus of US$5 billion from a US$1 billion base. Saharan Africa generate approximately the same amount of Resources for Reference power per year as Spain. Although the African markets pres- ent perhaps the greatest infrastructure need, the supply of KPMG International: Bridging the Global Infrastructure Gap, 2009 http://www.pe.kpmg.com/Bridging_the_Global_Infrastructure_Gap.pdf capital for infrastructure in the region remains comparatively Merrill Lynch: Emerging Markets Infrastructure Spending, July 2008 small. The World Bank estimates the infrastructure financing http://www.ml.com gap in the region at US$35 billion per year. Morgan Stanley: Emerging Markets Infrastructure, Apr. 2008 http://www.morganstanley.com/views/perspectives/files/infrastruc- South Africa’s needs are well-documented, in light of inten- ture_paper4.pdf sive investment underway as the country prepares to host Preqin: Infrastructure Spotlight, Feb. 2009 the 2010 FIFA World Cup. Merrill Lynch estimates infrastruc- http://www.preqin.com/docs/newsletters/INF/Feb%202009.pdf ture spending in South Africa will total US$60 billion annually Probitas Partners: Investing in Infrastructure Funds, Sept. 2007 between 2008–2011. South Africa’s power supply is its most http://www.irei.com/uploads/marketresearch/103/marketResearch- File/Probitas_Inv_Infra.pdf pressing issue: rolling power outages plaguing the country are estimated to reduce GDP growth by as much as 0.6%. World Bank Private Participation in Infrastructure Database http://ppi.worldbank.org/

Fund Manager Fund Name Geographic Focus

2i Capital Group Indian Infrastructure Development Fund (Raising, US$300m) India 3i Group India Infrastructure Fund (2008, US$1.2B) India ABN AMRO Asset Management Brazilian Infrastructure Investment Fund (BIIF) (2006, US$450m) Brazil ADCB Macquarie Corporate Finance ADCB Macquarie Infrastructure Fund (AMIF) (2008, US$630m) Middle East Abraaj Capital Infrastructure and Growth Capital Fund (IGCF) (2006, US$2B) Middle East AmInvestment Bank, Konzen Million Water Fund (Raising, US$320m) Pan-Asia AMP Capital Investors Asian Giants Infrastructure Fund (2008, US$750m) China, India Axis Private Equity Axis Infrastructure Fund I (2008, US$500m) India Babcock and Brown Turkish Infrastructure Fund (Raising, US$1B) Turkey Baer Capital Partners Beacon India Private Equity Fund (2008, US$200m) India Beijing Enterprises Group Ltd. Bluewhale (2008, US$150m) China China Science & Merchants Capital CSMVC Infrastructure Fund (Raising, US$1.5B) China Management Darby Overseas Investments, Ltd. Brazil Mezzanine Infrastructure Fund (BMIF) (2006, US$236m) LatAm Dubai International Capital, HSBC Bank MENA Infrastructure Fund (2008, US$300m) Middle East EFG-Hermes InfraMed (Raising, US$1.3B) Southeastern Europe and North Africa EMP Global Central America Mezzanine Infrastructure Fund (CAMIF) (2009, US$155m) LatAm Eredene Capital Eredene Capital India Fund II (Raising, US$300m) India Eurocapital Peregrine Securities Eurocapital Peregrine Securities Fund I (Raising, US$100m) Indonesia Great Circle Capital Great Circle Fund (2006, US$190m) CEE/CIS Gulf One Gulf One Infrastructure Fund I (Raising, US$2B) Middle East Harith Pan African Infrastructure Development Fund (PAIDF) (Raising, US$1B) Africa HBG Holdings HBG Investment Holdings Limited (Raising, US$200m) Middle East, North Africa and South Asia Hubei Joint Development Investment Hubei Joint Development Investment Company (2008, US$470m) China Company ICICI Bank ICICI Infrastructure Fund (Raising, US$2B) India IDFC Project Equity India Infrastructure Fund (IIF) (2008, US$1B) India IL&FS Investment Managers Ltd., Standard Chartered IL&FS Asia Infrastructure Growth Fund (Raising, US$1B) China, India Standard Chartered Private Equity Indochina Capital Indochina Infrastructure Holdings (Raising, US$500m) Vietnam InfraCo Management Services, Ltd. InfraCo Sub-Sahara Infrastructure Fund (Raising, US$200m) Africa JP Morgan Partners, LLC. Asian Infrastructure & Related Resources Opportunity Fund (2008, US$1.5B) Pan-Asia

KGL Investment Cayman Ltd. The Port Fund L.P. (Raising, US$500m) Middle East Macquarie Bank, Renaissance Capital Macquarie Renaissance Infrastructure Fund (2008, US$1.5B) CIS Millennium Global Investments Millennium Global Africa Opportunities Fund (2007, US$300m) Africa Millennium Private Equity Global Energy Fund (2007, US$200m); Global TMT Fund (2008, US$150m) Middle East

Moroccan Infrastructure Management Moroccan Infrastructure Fund (MIF) (2008, US$105m) Morocco Mubadala Infrastructure Partners Mubadala Infrastructure Partners (2008) Middle East, North Africa, Limited (MIP) Turkey Prescient Fieldstone Investment African Energy Infrastructure Fund (Raising, US$500m) Africa Management SREI Venture Capital Ltd Prithvi Infrastructure Fund (Raising, US$250m) India Troika Capital Partners Troika Capital Partners Infrastructure Fund (Raising, US$1B) Russia UBS Asset Management/Abu Dhabi ADIC-UBS Infrastructure Fund I (2008, US$600m) Middle East Investment Company Vision Global Investments Vision Global India Infrastructure Fund (Raising, US$1B) India YES Bank Limited YES Bank Infrastructure Fund (Raising, US$550m) India