Sample Pages.Indd

The 2009 Preqin Infrastructure Review - Sample Pages

Contents

1. Executive Summary 7 13. Listings of Infrastructure Fund Terms and Conditions 87 - Key terms and conditions for 27 infrastructure funds 2. Data Sources 13 14. Analysis of Infrastructure Fund Performance 91 3. Review of the Unlisted Infrastructure Market 17 - Targeted performance, net IRRs, net multiples, dry powder - Growth of the unlisted fund market, evolution of unlisted funds, fund geographic focus trends, project stage and asset focus trends, impact of PPP/PFIs, manager 15. Listings of Infrastructure Fund Performance 99 location and experience, emergence of fund of funds, predictions for the future of the asset class - Key performance metrics for 62 vehicles. All performance shown is net to investor

4. Review of Recent Infrastructure Fundraising: 2007-2009 25 16. Regional Focus: Key Facts and Figures 103 - Fundraising by geographic focus and manager location, breakdown of fundraising - Asia, Continental Europe, India, MENA, North America, South America, UK market by fund size, success in achieving targets, project stage focus, industry focus 17. Infrastructure Firm Preferences 115 - Matrix showing fi rm preferences by location, industry and project stage 5. Listings of Infrastructure Funds Closed Historically 31 18. Infrastructure Firm Profi les (Unlisted Primary Fund Managers) 127 6. Review of Current Infrastructure Fundraising Market 45 - Interim closes, fund focus, manager location, project stage focus, placement agent 19. Infrastructure Firm Profi les (Listed Fund Managers) 263 use, manager experience 20. Infrastructure Firm Profi les (Fund of Funds Managers) 293 7. Listings of Infrastructure Funds on the Road 51 21. Review of Institutional Investors in Infrastructure Funds 311 8. Review of Listed Infrastructure Market 59 - Why investors are attracted to infrastructure, make-up of investor universe, - The state of the current listed infrastructure market, fund geographic focus break- commitment levels, investor size, source of allocations down, project stage and asset focus trends, manager location and experience, predictions for the future of listed funds 22. Profi les for Key Investors in Infrastructure Funds 319 9. Listings of Listed Infrastructure Funds 65 - Detailed profi les for over 230 investors in infrastructure funds

10. Review of Infrastructure Fund of Funds 69 23. Index 333 - The growth of the infrastructure-speciﬁ c fund of funds market, the role of vehicle- - Infrastructure Firms type in the infrastructure marketplace, fundraising performance, vehicle focus - Investors breakdown, manager location - Figure Index 11. Listings of Infrastructure Fund of Funds 77 24. Glossary 345 12. Analysis of Infrastructure Fund Terms and Conditions 81 25. Other Publications 349 - Management fees, hurdle rates, carried interest, fee rebates to investors, manager commitments, key man provisions, no-fault divorce clauses - Other Preqin Products

Fig. A: Infrastructure Fundraising Over Time Executive Summary

As Fig. A shows, the infrastructure fund industry has experienced signiﬁ cant growth over the course of the 21st Century, growing from what most considered as a small subset of the private equity industry, into what is now often considered to be an asset class in its own right.

From Niche Sector to Separate Asset Class

Fig. B shows the proportions of investors using different sources from which to fund their infrastructure investments. 31% of infrastructure investors make investments in the asset class though their private equity allocations and 16% do so through their real Fig. B: Split of Infrastructure Investors by Source of Infrastructure Allocation assets allocations. Some investors prefer to make infrastructure investments through their private equity or real assets allocations so that they can maintain a strategy of investing in infrastructure opportunistically. However, an increasing number of investors are carving out separate allocations to the asset class as they put in place permanent programs for infrastructure investing. 53% of investors now have a separate allocation to infrastructure, up from the 47% observed in last year’s Review.

The reason for many investors to establish a separate allocation for infrastructure investments is due to the markedly different risk return proﬁ le that is exhibited by the asset class in comparison with other private equity fund types such as buyout. Infrastructure fund investments tend to shoot for lower returns, but with a much lower risk proﬁ le.

Low Risk, Low Returns? Fig. C: Split of Targeted IRRs (%) As Fig. C shows, a signifi cant proportion of vehicles (24%) are targeting returns between 10% and 13.9%, which is relatively low in comparison with the targeted returns of other alternative assets funds. A further 24% are targeting between 14% and 17.9%. The biggest data point is for fi rms targeting between 18% and 21.9%, which although is still shy of the returns regularly sought by other alternative asset managers, is still a relatively high return that would satisfy a signifi cant proportion of investors. Only 17% of funds in our sample were seeking returns at a Proportion of Funds level comparable with private equity buyout funds at 22-30%.

Although the relative immaturity of the asset class means that the majority of vehicles are not yet at Targeted Net to Investor IRR (%) a stage where their performance can be viewed in an especially meaningful way, the returns that are Fig. D: Growth of Infrastructure Funds on the Road available are encouraging, with only a single fund on the Preqin database showing a negative IRR, and 40% of vehicles displaying a performance exceeding 18% IRR.

Infrastructure after the Crash

As Fig. A shows, infrastructure fundraising has clearly taken a massive hit following the onset of the credit crunch. At the mid-year point in 2009 only $3.5 billion had been raised by three funds achieving a ﬁ nal close. The drop in fundraising clearly has little to do with the number of funds on the road – as Fig. D shows, the number of vehicles currently seeking capital is at record levels with 96 funds seeking an aggregate $103.5 billion. This reversal of fortunes raises questions as to whether this drop represents

© 2009 Preqin Ltd 4 1. Executive Summary - Sample Pages a temporary blip or a more fundamental change in streams are especially resilient in the face of an price index or retail price index, for example) and investor appetite. economic downturn. therefore protect returns from the threat of inﬂ ation, given the price and income inelasticity of demand for Are Investors Still Keen on Infrastructure? An Attractive Prospect in the Current Market such assets in many circumstances.

All the evidence shows that investors are keen The defensive properties displayed by infrastructure Stalling Rather Than Decreasing to access infrastructure investments, with both investments have meant that investor interest in the existing investors showing a desire to make further asset class has continued to grow at a time when other Whilst it is true that the pace of commitments has investments in the future, and with new institutions asset classes have been more badly affected by the slowed, it appears that sentiment and optimism establishing infrastructure allocations on a regular recent economic crisis. In addition to this, numerous towards the asset class remains high and that basis. stimulus packages announced by governments new investors are still entering the market. The around the world have included infrastructure as infrastructure investment market’s momentum has There has been increasing acknowledgement over an important part of their overall plans, including stalled somewhat, rather than decreased, with recent years of the need for massive infrastructure providing backing by guaranteeing the ﬁ nancing of investors still keen on the asset class and waiting for development across the globe – for new assets in infrastructure projects, which improves the risk/return the right time to make further commitments. developing countries and for widespread renewal of proﬁ le for investors and will stimulate investment existing assets in the developed world. Investors and in the sector. In times of recession, the consistent As a result of the shift in the global economy, many managers alike began to realise the potential array of returns provided by investments in infrastructure, institutional investors have distressed investment investment opportunities opening up. and the fact that they are easily predictable into the portfolios as a result of falling valuations of assets future, make the asset class an attractive prospect to across the board, and have not been able to make Low Correlation to Other Asset Types investors. commitments at the same rate as in previous years.

Additionally, infrastructure investments, particularly Hedging Against Infl ation Although other areas of alternatives have also been private unlisted fund investments, have a low negatively affected by this situation, infrastructure correlation to other types of investments, and as However, investors have now begun to look at how funds tend to be amongst the largest of all closed- such can be attractive to investors for portfolio conditions will develop as we move towards economic end investment funds, and are therefore reliant upon diversifi cation purposes. The stable and uncorrelated recovery. One popular belief is that the massive fi scal gaining big commitments from investors if they are to returns produced by infrastructure investments stimuli funded through government borrowing, as well achieve a fi nal close. With relatively high minimum derive from the nature of the services provided as increases in money supply, will inevitably lead to commitment levels, infrastructure funds will take by infrastructure assets. Whatever the state of rising infl ation in the future, and thus the consideration more time to recover than other private equity fund the economy or consumer confi dence, consumer of the need to build protection against future infl ation types in the current market, as it is these types of demand for the services provided by infrastructure increases into investment portfolios is growing in commitments that will be most diffi cult to attract in the assets is generally quite inelastic, as the assets importance. Investments in infrastructure often have current market. are often essential utilities such as water and the benefi cial characteristic of providing an infl ation electricity provision. Social infrastructure assets, hedge. Infrastructure assets often have contracts in Momentum in the Fundraising Market such as schools and hospitals, are considered to be place that annually adjust tariffs charged according to particularly defensive investments, as their revenue a measure of the country’s rate of infl ation (consumer However, although fi nal closes have been scarce, we

© 2009 Preqin Ltd 5 1. Executive Summary - Sample Pages have seen an increasing number of fund managers holding interim closes on their vehicles in market, enabling them to actively start investing while still seeking to attract institutional support for their latest vehicles.

In total, 40 of the 96 funds in market have held an interim close, with these vehicles having an aggregate total target of $39.1 billion. We would expect that as market conditions improve, the vast majority of these funds will be able to complete their fundraising within the next 18 months, and that the infrastructure asset class will once again see fundraising occurring at the high levels that we experienced in 2007 and 2008.

Although current conditions are certainly challenging, we believe that the infrastructure asset class represents a compelling investment opportunity for investors, and that once funds become available we will see a recovery in infrastructure fundraising, with the current economic turbulence actually helping to attract investors to the asset class.

The 2009 Preqin Infrastructure Review

All the data and analysis contained within the body of the Review has come from direct contact with the investors and fund managers wherever possible, with all ﬁ rms listed having been given the opportunity to provide feedback and contribute additional information in order to make the publication as comprehensive as possible. As a result, the 2009 Preqin Infrastructure Review is more detailed and powerful that ever, with comprehensive global coverage of all different aspects of the market. We hope that you ﬁ nd this year’s edition to be a useful tool, and as ever we welcome any feedback and suggestions that you may have.

Fund and Firm Fund Close (mn) Close Project Stage Geographical Focus Industry Focus Investors Fund Contact Target (mn) Date Strategy Climate Change 150 EUR 150 EUR May-07 Asia, Central Europe, Economic: Renewable Energy Nina Dohr- Investment I East Europe, North Pawlowitz Africa, South America 3C Consulting 3i India Infrastructure Fund 1,000 USD 1,200 USD Apr-08 Brownfield, Economic: Aviation/Aerospace, Energy, 3i Infrastructure, Alberta Investment Nadyne Greenfield, Roads, Sea Ports Management Corporation, APG - All Mcmicoll, 3i Secondary India Pensions Group, Cavendish Limited, Jennifer Letki Stage First Gulf Bank, Gartmore Private Equity, Lord Baltimore Capital Corporation, Lothian Pension Fund, Nationwide Insurance, Partners Group ABN AMRO Global 1,000 EUR 1,100 EUR Mar-07 Brownfield, Europe, Global Economic: Aviation/Aerospace, Energy, AP-Fonden 3, APG - All Pensions Hans Meissner, Infrastructure Fund Secondary Railway, Roads, Tunnels, Water, Waste Group, Greater Manchester Pension Hafeez Ahmed Stage Management, Sea Ports, Distribution/ Fund, Merimieselakekassa, PGGM, Storage Facilities West Midlands Pension Fund AAICM Australia Social: Education Facilities, Healthcare/ Medical Facilities, Prisons Abraaj Infrastructure and 2,000 USD 2,000 USD Dec-07 Brownfield, Asia, Middle East, Economic: Energy, Natural Resources, Deutsche Bank Asset Management Arif Naqvi Growth Capital Fund Greenfield North Africa Transportation, Utilities, Water, Sea Ports Abraaj Capital Bahrain, United Arab Social: Education Facilities, Healthcare/ Emirates Medical Facilities AC Infraestructuras 150 EUR Feb-06 Brownfield, Europe Economic: Energy Caixa Catalunya, Kutxa, Sa Nostra AC Desarrollo Secondary Spain Stage Kagiso Infrastructure 649 ZAR Jan-06 Brownfield, Economic: Aviation/Aerospace, Energy, Kagiso, Liberty Life, MetLife Insurance Empowerment Fund Secondary Railway, Telecom, Roads, Water, Sea Company, Metropolitan Asset Stage Ports Managers, Old Mutual Investment African Infrastructure South Africa Social: Prisons Group (South Africa), Remgro Investment Managers African Infrastructure 1,320 ZAR Jun-04 Africa Economic: Aviation/Aerospace, Energy, Cape Joint Pension Fund, Capital Investment Fund Railway, Transportation, Telecom, Alliance Life, Eskom Pension and Roads, Water, Sea Ports Provident Fund, MetLife Insurance African Infrastructure South Africa Social Company, Metropolitan Asset Investment Managers Managers, Nedbank, Nordic Development Fund, Old Mutual Investment Group (South Africa), Public Investment Corporation, Standard Bank Group, Stanlib Asset Management Limited

on the road targeting an aggregate $90.1 billion, more eight percentage point increase from June 2008, when than double the $38.5 billion being sought in January 34% of funds in market had held an interim close. This Review of the 2007. Subsequently, infrastructure has been amongst shows a good momentum in the market, and we would the fastest growing private equity fund types in recent expect a high proportion of these funds to achieve a years. fi nal close by the end of 2010. Many fund managers Current Unlisted are postponing fi nal close dates and prolonging the As has been discussed in previous sections, fundraising period or considering holding interim Infrastructure competition for investor commitments has grown due closes in order to begin investing capital sooner. to the effects of the global market crisis, and this has Fundraising Market resulted in a record number of infrastructure funds in Funds being Abandoned / Put on Hold market as of June 2009. As Fig. 6.1 shows, there are currently 96 funds on the road seeking an aggregate Since the beginning of 2008, a total of 25 infrastructure $103.5 billion. Long-term investor appetite for funds have been abandoned or placed on-hold. This The unlisted infrastructure market has grown rapidly infrastructure assets remains positive, but competition again highlights the challenging nature of fundraising in recent years as a result of increased institutional among fund managers will continue to be tough as during the market downturn. investor demand for exposure to infrastructure investors with limited capital seek the best investment projects. This has resulted in a surge in the numbers opportunities. Focus of Funds Currently on the Road of infrastructure funds on the road since the early 2000s. Fig. 6.1 shows the annual increase; in January Interim Closes for Funds in Market As shown in Fig. 6.2, more funds in market are 2007 there were 47 infrastructure funds raising focused on Asia and Rest of World than both Europe capital, while a year later the fi gure had reached 77. As of June 2009, 42% of infrastructure funds on the and North America as of June 2009. A total of 47 By January 2009, there were 94 infrastructure funds road had held an interim close. This represents an funds currently raising are focused outside of the

Fig. 6.1: Growth of Infrastructure Funds on the Road Fig. 6.2: Infrastructure Funds on the Road by Geographic Focus

Fig. 16.10: Split of India Focused Infrastructure Regional Focus: India Market by Firm Experience

Fig. 16.9: India Focused Infrastructure Fundraising

Fig. 16.12: Split of Funds Raised by Manager Geographic Location Fig. 16.11: Ten Largest Funds Focused Primarily on India Firm Year Fund Size Fund Name Firm Name Status Location Raised (Mn) Macquarie State Bank of India Macquarie Capital Funds Australia 2009 USD 2,000 1st Close Infrastructure Fund 3i India Infrastructure Fund 3i UK 2008 USD 1,200 Closed India Infrastructure Advantage Fund ICICI Venture Funds Management India 2008 USD 1,000 Raising Principle Europa Indian Infrastructure Principle Europa Indian Equity Switzerland 2009 USD 1,000 Raising Fund Partners IDFC India Infrastructure Fund IDFC Project Equity Company India 2008 USD 1,000 2nd Close JPMorgan Asian Infrastructure & JPMorgan - Infrastructure US 2008 USD 1,000 2nd Close Related Resources Opportunity Fund Investments Group Asian Giants Infrastructure Fund AMP Capital Investors Australia 2009 USD 750 1st Close IDFC Private Equity Fund III IDFC Private Equity India 2008 USD 700 Closed Old Lane India Speciﬁ c Fund Old Lane Management US 2006 USD 500 Closed Q India PE Fund QIEF Management Mauritius 2009 USD 500 Raising

Beehive Capital Tel: +44 (0)20 7291 5480 www.beehivecapital.com Leverton House, 13 Bedford Square, London, WC1B 3RA, UK Established: 2001 Fax: +44 (0)20 7291 5492 Beehive Capital is a specialist fund management business that has developed a seasoned private equity funds management and back office platform. Beehive Capital has successfully raised two industry- specific private equity funds and follows a strategy of investing ‘narrow and deep’ into growth sectors. With an established team of professionals, Beehive Capital is able to provide a comprehensive fund management support platform for its vehicles. Beehive Water & Waste Fund Raising Fund Size (mn): 400 EUR * Beehive Water and Waste Fund will invest in environmentally responsible and financially robust Strategy Allocation: Primary infrastructure projects across Europe, the Middle East and Mediterranean North Africa. Target projects will be greenfield, brownfield and secondary stage projects spanning water treatment, wastewater Infrastructure Industry Preference: treatment, desalination, waste treatment and waste to energy facilities. - Economic: Environmental Services, Renewable Energy, Water, Waste Management, Clean Technology Beehive Water and Waste Fund will invest predominantly in early-stage development opportunities PPP/PFI Investments: No across desalination, wastewater and waste to energy projects that generate strong risk adjusted Project Stage Strategy: Brownfield (15%), Greenfield (75%), Secondary Stage (10%) returns and provide vital water and waste treatment capacity in the fund’s target regions. Selective Regions: Europe, Middle East, North Africa brownfield and secondary investments may also be made providing all other investment criteria are met and they are likely to lead to further greenfield opportunities. Fund Contact: Paul Capell Investments by the fund will range in size from GBP 15 million to GBP 50 million of equity and may be increased further subject to the availability of additional external funding or co-investment by fund LPs.

Up to 10% of the fund will be allocated to investment in innovative but not yet commercially developed water and waste technologies. The fund expects to invest 30% to 60% of total commitments across water and waste projects respectively and generate net IRRs to investors of greater than 15% over a seven-year fund life. Contacts Name: Job: Tel: Email: Paul Capell Managing Partner +44 (0)20 7291 5472 [email protected] Jonathan Treacher Partner +44 (0)20 7291 5486 [email protected]

Carlyle Group Funds Raised (mn): 1,835 USD Tel: +1 202 729 5626 www.carlyle.com 1001 Pennsylvania Avenue, Suite 220 South, Washington, DC, 20004-2505, US Established: 1987 Fax: +1 202 347 1818 [email protected] Founded in 1987, Carlyle Group is one of the world's largest private equity firms, with more than USD 81.1 billion under management. The firm manages over 60 funds in five investment disciplines (buyout, venture and growth capital, real estate and leveraged finance), focusing on industries including aerospace, defence, automotive transportation, consumer, retail, energy and power, infrastructure, healthcare, industrial, technology, media and telecommunications. The firm relies on a team of 575 investment professionals operating out of offices in 21 countries to uncover superior opportunities in North America, Europe, Asia, Australia, the Middle East/North Africa and Latin America. Carlyle Riverstone Renewable Energy Infrastructure Fund II Raising Fund Size (mn): 1,200 USD * Carlyle Riverstone Renewable Energy Infrastructure Fund II plans to follow its predecessor and invest Strategy Allocation: Primary in North American renewable energy infrastructure assets in sectors including solar, hydro, wind and biomass energy utilisation. Infrastructure Industry Preference: - Economic: Energy, Renewable Energy Regions: North America Carlyle Infrastructure Partners Closed (2007) Fund Size (mn): 1,150 USD Carlyle Infrastructure Partners focuses primarily on investment opportunities within the US and Canada Strategy Allocation: Primary but up to 30% may be invested in other countries. The vehicle seeks exposure to a variety of economic infrastructure sectors. It targets secondary stage economic infrastructure investments primarily in the Infrastructure Industry Preference: transportation and water industries, but also includes shipping ports, airports and bridges. It also - Economic: Aviation/Aerospace, Bridges, Energy, Parking Lots, Railway, Transportation, invests in assets and installations of public convenience and necessity (e.g. parking facilities, stadiums, Roads, Water, Waste Management, Sea Ports hospitals, schools and correctional facilities). - Social: Education Facilities, Healthcare/Medical Facilities, Prisons Project Stage Strategy: Brownfield, Secondary Stage Regions: Global, North America Fund Contact: Robert Dove, Barry Gold Carlyle Riverstone Renewable Energy Infrastructure Fund I Closed (2006) Fund Size (mn): 685 USD Carlyle Riverstone Renewable Energy Infrastructure Fund I is a North American focused infrastructure Strategy Allocation: Primary vehicle seeking to generate long-term capital appreciation through private equity investments in renewable energy infrastructure assets in sectors including solar, hydro, wind and biomass energy Infrastructure Industry Preference: utilisation. The vehicle targets both brownfield and secondary stage infrastructure projects. The fund - Economic: Renewable Energy invests in projects ranging from USD 100 million to USD 1 billion in enterprise value. Project Stage Strategy: Brownfield, Secondary Stage Regions: North America Contacts Name: Job: Tel: Email: Robert Dove Managing Director - Infrastructure +1 202 729 5626 [email protected] Barry Gold Managing Director - Infrastructure +1 212 381 4900 [email protected]

Dragon Capital Tel: +84 (0)8 3823 9355 www.dragoncapital.com 1901 Me Linh Point, 2 Ngo Duc Ke Street, District 1, Ho Chi Minh City, Vietnam Established: 1994 Fax: +84 (0)8 3823 9366 [email protected] Dragon Capital is an integrated financial services provider with an exclusive focus on Vietnam’s capital markets. Established in 1994, the group is now one of the largest and most experienced asset managers in the country with total group assets in excess of USD 1 billion. With the launch of subsequent funds, the group has evolved into a fully diversified investment institution, offering its client base a comprehensive range of financial services: corporate finance, fund management, direct and indirect investments and capital markets. The firm plans to operate within the infrastructure sector through its clean energy investment vehicle which will seek investments in renewable energy projects. Mekong Brahmaputra Clean Development Fund Announced Fund Size (mn): 100 USD * Mekong Brahmaputra Clean Development Fund is the first green development fund to focus on Strategy Allocation: Primary deploying capital in renewable energy and low carbon businesses and projects in some of Asia’s fastest developing countries, principally Vietnam, Thailand and Nepal, and also Sri Lanka, Laos, Infrastructure Industry Preference: Cambodia, Bhutan and Bangladesh. The fund will invest in a variety of renewable energy fields - Economic: Clean Technology, Renewable Energy, Waste Management including hydro, wind, waste management and other energy saving facilities. It plans to work closely PPP/PFI Investments: Yes with experienced development companies throughout the sub-continent. The fund excludes Project Stage Strategy: Brownfield, Greenfield investments in biofuels and the more developed emerging markets of India and China. Countries: Bangladesh, Bhutan, Cambodia, Laos, Nepal, Sri Lanka, Thailand, Vietnam Fund Contact: Rachel Hill Contacts Name: Job: Tel: Email: Gavin Hill Investment Manager +84 (0)9 4689 2845 [email protected] Rachel Hill Director +44 (0)7971 214 852 [email protected] Gavin Smith Fund Manager +84 (0)8 3823 9355 [email protected]

© 2009 Preqin Ltd * = Fund Target 12 21. Review of Investors in Infra. Funds - Sample Pages can maintain a strategy of investing in infrastructure Fig. 21.5: Split of Investors by Infrastructure Project Type Preference opportunistically. However, an increasing number of investors are carving out separate allocations to the asset class as they put in place permanent programs for infrastructure investing. 53% of investors now have a separate allocation to infrastructure, up from the 47% observed in last year’s Review.

Infrastructure Investors’ Project Stage Preferences

Fig. 21.5 shows the proportions of infrastructure investors that are interested in investing in the different project stages of infrastructure assets. Approximately half of all investors in infrastructure will invest in any of the three project stages of greenfi eld, brownfi eld and secondary stage. 4% of investors show a preference for investing only in greenfi eld focused investments, 5% for brownfi eld only and 9% for secondary stage only. Expectedly, only a very small proportion of investors, around 1%, look to invest in the greenfi eld Fig. 21.6: Proportion of Investors that Invest in First-Time Funds and secondary stages without also making brownfi eld stage investments. 16% of investors will invest in greenfi eld and brownfi eld focused investments only, while 15% look for brownfi eld and secondary stage investments only.

First-Time Funds

Fig. 21.6 shows the proportion of infrastructure investors that are willing to invest in fi rst-time infrastructure funds. The vast majority of investors, nearly 70%, will invest in fi rst-time funds. This is unsurprising given the relative youth of infrastructure fund investing as an investment sector, and it is likely that this fi gure will decrease somewhat as the industry matures. A further 4% will invest in fi rst-time funds managed by teams that have spun out of a parent fi rm, while an additional 9% would potentially consider

Dallas Police & Fire Pension System Public Pension Fund Infrastructure Industry Preferences (Based on Past Investments and Stated Preferences) Economic: Energy, Roads, Sea Ports, Transportation, Utilities, Waste Management, Water 2301 North Akard Street, Suite 200, Dallas, TX, 75201, US Tel: +1 214 638 3863 Web: www.dpfp.org Sample Fund Investments Fax: +1 214 638 6403 Email: [email protected] Fund Committed Dallas Police & Fire Pension System has been active in the infrastructure asset class since 2007. It Fund Name Manager Vintage Fund Size Focus (mn) has a diverse investment strategy, featuring direct investments in infrastructure projects and RREEF North America commitments to unlisted infrastructure investment vehicles. The pension system commits capital to RREEF Infrastructure 2009 500 USD* US 50.0 USD the asset class via its allocation to private equity. Infrastructure Fund JPMorgan Asian JPMorgan - As of Q1 2009, Dallas Police & Fire Pension System had committed to three infrastructure-specific Infrastructure & Related 1,000 Infrastructure 2008 ROW 37.0 USD vehicles: a USD 50 million commitment to RREEF North America Infrastructure Fund, a USD 37 Resources Opportunity USD* Investments Group million investment in JPMorgan Asian Infrastructure & Related Resources Opportunity Fund and a Fund further USD 20 million commitment to JPMorgan Infrastructure Investments Fund. These vehicles JPMorgan - JPMorgan Infrastructure 5,000 provide the pension scheme with exposure to a global portfolio of infrastructure assets in core sectors Infrastructure 2006 US 20.0 USD Investments Fund USD* including transportation, utilities and water, as well as social infrastructure projects. Investments Group

In March 2009, Dallas Police & Fire Pension System invested in infrastructure through LBJ Contact Name Position Tel Email Development Partners, a consortium hired to design and construct a new USD 4 billion highway Assistant Administrator infrastructure project in Texas. The pension system invested USD 445 million in the consortium, which Brian Blake +1 214 638 3863 [email protected] consists of Macquarie Funds Group, Cintra, Ferrovial Agroman and Meridiam Infrastructure Fund. Investments Dallas Police & Fire Pension System made the investment to prove how US pension funds and Director - Global Talal Elass +1 214 638 3863 [email protected] private investors could meet the growing demand for US public infrastructure projects in the future. Investments The project further exposed the pension plan to North American toll road assets through direct Mike Taylor CFO +1 214 638 3863 [email protected] investment strategies.

As of Q2 2009, Dallas Police & Fire Pension System had USD 107 million invested in the infrastructure asset class through fund commitments, which equated to approximately 3% of total assets under management. The pension plan will continue to invest capital in infrastructure projects over the coming 12 months, through both direct investment strategies and unlisted infrastructure funds. Total Assets (mn): 3,500 USD Source of Allocation to Infrastructure Funds: Part of Private Equity Allocation Committed to Infrastructure (mn): 107 USD 3.1% of Total Assets

Preferences Direct Unlisted Funds Listed Funds • • Secondary Greenfield Brownfield Primary Fund of Funds Secondary Mezzanine Stage • • • Emerging PPP/PFI N. America Europe Asia Global First-Time Funds Markets Investments • • Yes

TAQA New World Investment Company Sample Fund Investments Fund Committed Abu Dhabi National Energy Company PJSC “TAQA”, P.O. Box: 55224, Abu Dhabi, 55224, United Fund Name Manager Vintage Fund Size Focus (mn) Arab Emirates Carlyle Infrastructure Tel: +971 2 694 3662 Web: www.taqa.ae Carlyle Group 2007 1,150 USD US 200.0 USD Partners Fax: +971 2 642 2555 Email: [email protected] TAQA New World is an active investor in the infrastructure asset class. TAQA has created an Contact Name Position Tel Email extensive and diversified infrastructure portfolio via direct investments and through unlisted peter.barker-homek infrastructure funds. The investment company was originally established to make investments purely Peter Barker-Homek CEO +971 2 694 3662 in the energy sector but through its unlisted fund commitments has also gained exposure to a range of @taqa.ae other sectors in both economic and social industries. TAQA has a global investment mandate but Doug Fraser CFO +971 2 694 3662 [email protected] focuses on markets in Asia, the Middle East, Europe, Africa and the US. Executive General Pablo H. Chavez +971 2 694 3662 [email protected] Manager In September 2006, TAQA New World entered into an agreement with Carlyle Group to invest AED 735 million (USD 200 million) in Carlyle Infrastructure Partners over a period of five years. The investment signalled a movement away from direct investment strategies and provided the investment company with exposure to a global portfolio of infrastructure assets in sectors including energy, healthcare, transportation, waste management and water.

As of Q2 2009, TAQA New World had invested AED 191 million (USD 52 million) of the AED 735 million it originally committed to Carlyle Infrastructure Partners. The investment company was planning to increase its exposure to the energy sector through direct investment strategies in 2009 in tandem with its relationship with Carlyle Group. Total Assets (mn): 86,387 AED Source of Allocation to Infrastructure Funds: Separate Infrastructure Allocation Committed to Infrastructure (mn): 191 AED 0.2% of Total Assets

Preferences Direct Unlisted Funds Listed Funds • Secondary Greenfield Brownfield Primary Fund of Funds Secondary Mezzanine Stage • • • Emerging PPP/PFI N. America Europe Asia Global First-Time Funds Markets Investments • •

Infrastructure Industry Preferences (Based on Past Investments and Stated Preferences) Economic: Aviation/Aerospace, Bridges, Energy, Natural Resources, Parking Lots, Railway, Roads, Sea Ports, Transportation, Tunnels, Waste Management, Water Social: Education Facilities, Healthcare/Medical Facilities, Prisons, Social

West Yorkshire Pension Fund Public Pension Fund Infrastructure Industry Preferences (Based on Past Investments and Stated Preferences) Economic: Aviation/Aerospace, Energy, Renewable Energy, Roads, Sea Ports, Transportation, 4th Floor Britannia House, PO Box 67, Bradford, BD1 1UP, UK Utilities Tel: +44 (0)1274 434 999 Web: www.wypf.org.uk Fax: +44 (0)1274 723 228 Email: [email protected] General Consultant: Hewitt Associates West Yorkshire Pension Fund (WYPF) is an active investor in the infrastructure asset class through its allocation to private equity. The pension scheme has been investing in the asset class since 2006, when it made a GBP 50 million investment in GS Infrastructure Partners I and a EUR 20 million Sample Fund Investments commitment to European Clean Energy Partners. These commitments provide the pension plan with Fund Committed Fund Name Manager Vintage Fund Size exposure to a portfolio of North American and European infrastructure assets in a range of industries Focus (mn) including transportation, utilities and renewable energy. European Clean Energy TCW Group 2006 354 EUR Europe 13.5 GBP Fund West Yorkshire Pension Fund does not have a limit on the amount of exposure to infrastructure GS Infrastructure GS Infrastructure vehicles permitted in its private equity portfolio. As of December 2008, WYPF had 5% of total assets 2006 6,500 USD US 26.5 GBP Partners I Investment Group dedicated to private equity, which equated to around GBP 315 million potentially available for investment in infrastructure. Contact Name Position Tel Email Also in December 2008, West Yorkshire Pension Fund announced it was planning to increase its Alternative Investments simon.edwards Simon Edwards +44 (0)1274 432 783 private equity exposure annually over the coming years, and subsequently resulted in increased Manager @bradford.gov.uk investments in the infrastructure asset class. The increase was at the expense of the pension plan’s Senior Investment susan.huddleston Susan Huddleston +44 (0)1274 432 317 traditional investment portfolio. Officer @bradford.gov.uk Head of Pensions & stuart.imeson As of April 2009, West Yorkshire Pension Fund had 2% of total assets invested in infrastructure and Stuart Imeson +44 (0)1274 432 317 Investments @bradford.gov.uk was planning to continue investing in the asset class within a set 2% to 6% range targeted for private equity investment. WYPF intended to further diversify its infrastructure portfolio by investing in between one and two infrastructure fund of funds vehicles over the coming 12 months. It also expressed an interest in funds with an element of secondary market activity. Total Assets (mn): 6,000 GBP Source of Allocation to Infrastructure Funds: Part of Private Equity Allocation Committed to Infrastructure (mn): 120 GBP 2.0% of Total Assets

Preferences Direct Unlisted Funds Listed Funds • Secondary Greenfield Brownfield Primary Fund of Funds Secondary Mezzanine Stage • • • • • Emerging PPP/PFI N. America Europe Asia Global First-Time Funds Markets Investments • • • • • No

The 2009 Preqin Infrastructure Review is the most comprehensive examination of the unlisted infrastructure fund market ever produced. With exclusive information on over 250 ﬁ rms, 400 funds and over 230 investors in the sector, plus detailed analysis reviewing every aspect of the industry, the Preqin Infrastructure Review is a vital purchase for fund managers, fundraising professionals, advisors, consultants, legal ﬁ rms and investors in this rapidly growing market. Features of this year’s publication include:

• Detailed analysis examining the history and development of the infrastructure market; recent funds closed; current fundraising market; fund terms and conditions; investors; performance; the listed fund market; plus separate sections showing key facts and fi gures for the most important regions. • Fund terms and conditions listings for 27 vehicles, plus transparent performance data for 62 infrastructure funds (all performance data is net to investors). • Profi les for over 250 infrastructure fi rms and 400 funds, including detailed investment For more information please visit: strategies and key information. www.preqin.com/infrastructure • Profi les for over 230 investors in the sector, including investment plans and key contact details. ------------2009 Preqin Infrastructure Review Order Form - Please complete and return via fax, email or post

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