Preqin Special Report: Asian Infrastructure

Content Includes: Preqin Special Report: Asian Infrastructure

Fundraising June 2015 Average size of Asia- focused infrastructure funds closed so far in 2015 reaches seven-year high.

Funds in Market

Lowest number of Asia- focused funds in market for four years.

Deals

Infrastructure deal flow has increased significantly in recent years.

Institutional Investors

Over half of infrastructure investors based in Asia allocate capital to the asset class through a distinct infrastructure allocation.

Regions in Focus

Detailed analysis of the infrastructure industry in Greater China, Northeast Asia, ASEAN and South Asia.

alternative assets. intelligent data. Download the data pack: Preqin Special Report: Asian Infrastructure www.preqin.com/AsiaINF15

Foreword

Despite the inception of the Asian Infrastructure Investment Bank (AIIB) by China and Japan’s further $110bn ﬁ nancing of the Asian Development Bank (ADB), there remains a structural ﬁ nancing gap for infrastructure in developing Asian countries. According to the ADB, this gap stands at $8tn from 2010 to 2020, and without adequate infrastructure, Asia’s rising economic growth will be harder to maintain.

However, the unlisted infrastructure market in Asia remains a diffi cult place to raise capital; only six funds closed last year raising an aggregate $2.7bn and only three vehicles have held a fi nal close so far this year. As it stands, 80% of Asia-headquartered managers are raising their fi rst vehicle, refl ective of the relative youth of the infrastructure market in Asia, although there is clearly scope for the asset class to develop in the coming years.

Asia presents a unique combination of developed and emerging economies, generating many different infrastructure opportunities for a wide spectrum of managers and investors. Infrastructure transactions, while not quite reaching the peak total values of 2013, are increasing in size; the average infrastructure deal size for an Asian asset last year was $368mn, a 32% increase on 2013. Additionally, Asia-based institutional investors are largely below their target allocations to the asset class suggesting capital is likely to ﬂ ow to infrastructure in the future.

In this report, we look at the unlisted infrastructure market in Asia by examining historical fundraising, funds in market, fund managers and investors based in the region, as well as looking at extensive information on completed infrastructure transactions on the continent. Contents

Overview of Asian Infrastructure 3 Fundraising 4 Funds in Market 6 Fund Managers 7 Institutional Investors 8 Deals 10 Greater China 12 Northeast Asia 13 ASEAN 14 South Asia 15

Infrastructure Online

Preqin’s Infrastructure Online contains detailed information on all aspects of the infrastructure industry worldwide. Constantly updated by our team of dedicated research analysts, the service features in-depth data on fundraising, fund managers, institutional investors, deals, fund performance and much more.

For more information, please visit: www.preqin.com/infrastructure

All rights reserved. The entire contents of Preqin Special Report: Asian Infrastructure, June 2015 are the Copyright of Preqin Ltd. No part of this publication or any information contained in it may be copied, transmitted by any electronic means, or stored in any electronic or other data storage medium, or printed or published in any document, report or publication, without the express prior written approval of Preqin Ltd. The information presented in Preqin Special Report: Asian Infrastructure, June 2015 is for information purposes only and does not constitute and should not be construed as a solicitation or other offer, or recommendation to acquire or dispose of any investment or to engage in any other transaction, or as advice of any nature whatsoever. If the reader seeks advice rather than information then he should seek an independent ﬁ nancial advisor and hereby agrees that he will not hold Preqin Ltd. responsible in law or equity for any decisions of whatever nature the reader makes or refrains from making following its use of Preqin Special Report: Asian Infrastructure, June 2015.

While reasonable efforts have been made to obtain information from sources that are believed to be accurate, and to conﬁ rm the accuracy of such information wherever possible, Preqin Ltd. does not make any representation or warranty that the information or opinions contained in Preqin Special Report: Asian Infrastructure, June 2015 are accurate, reliable, up-to-date or complete. Although every reasonable effort has been made to ensure the accuracy of this publication Preqin Ltd. does not accept any responsibility for any errors or omissions within Preqin Special Report: Asian Infrastructure, June 2015 or for any expense or other loss alleged to have arisen in any way with a reader’s use of this publication.

Overview of Asian Infrastructure

$$4bn4bn Capital Raised by Infrastructure Firms in the Last 10 Years by Location Value of the largest infrastructure deal in Asia, the October 2011 acquisition of Central Java Coal Fired Power Plant in JJapanapan Indonesia. $$0.6bn0.6bn

SSouthouth KoreaKorea CChinahina $$6.8bn6.8bn 229595 $$4.1bn4.1bn Number of HHongong KKongong $$1.5bn1.5bn institutional investors IIndiandia in Asia investing in $$4.0bn4.0bn infrastructure. TThailandhailand $$0.1bn0.1bn

Infrastructure dry powder of Asia-based fund SSingaporeingapore IIndonesiandonesia managers has $$3.8bn3.8bn $$0.8bn0.8bn increased by 550%0% since December 2013 to $9.6bn.

Source new investors for funds or deals

Identify new investment opportunities

Conduct competitor and market analysis

Search for potential deal partners

Develop new business

Register for demo access to find out how Preqin’s Infrastructure Online can help your business: www.preqin.com/infrastructure alternative assets. intelligent data. Download the data pack: Preqin Special Report: Asian Infrastructure www.preqin.com/AsiaINF15

Fundraising

Fundraising for Asia-focused unlisted infrastructure offerings has Asia-focused infrastructure funds closed in 2014 raised an fl uctuated each year between 2008 and 2014, with fundraising average of $449mn, a seven-year high and a 29% increase reaching its peak in 2013 when 18 funds closed raising an on the $349mn average in 2013 (Fig. 2). Funds closed so far aggregate $6.3bn (Fig. 1). However, 2014 saw a 57% drop in this year have an average size of $467mn, a refl ection of the aggregate capital raised, with only six funds reaching a fi nal increased concentration of capital among a few large managers. close. So far this year, there have been three funds focused on Fig. 3 further demonstrates the success that some fi rms have Asia that have held a fi nal close raising a collective $1.4bn. At achieved in past few years; in 2011, just 13% of infrastructure this rate, 2015 is likely to surpass last year’s total and be in line funds closed that year exceeded their target, whereas in 2014, with the average aggregate capital raised each year in the period 67% did. 2008-2012 ($2.8bn).

Fig. 1: Annual Asia-Focused Unlisted Infrastructure Fig. 2: Average Asia-Focused Unlisted Infrastructure Fund Fundraising, 2008 - 2015 YTD (As at 28 May 2015) Size, 2008 - 2015 YTD (As at 28 May 2015)

20 500 467 18 449 18 450 403 16 15 400 349 14 13 No. of Funds 350 331 Closed 12 300 281 10 10 Aggregate 250 227 8 Capital 205 8 200 6 6.3 6 Raised ($bn) 6 150 4 3.3 3.2 3.1 2.9 3 2.7 Fund Size ($mn) Average 100 2 1.7 1.4 50 0 2008 2009 2010 2011 2012 2013 2014 2015 0 YTD 2008 2009 2010 2011 2012 2013 2014 2015 YTD Year of Final Close Year of Final Close Source: Preqin Infrastructure Online Source: Preqin Infrastructure Online

Fig. 3: Fundraising Success of Asia-Focused Unlisted Fig. 4: Average Time Spent on the Road by Unlisted Infrastructure Funds, 2008 - 2015 YTD (As at 28 May 2015) Infrastructure Funds, 2008 - 2015 YTD (As at 28 May 2015)

100% 30 13% 90% 20% 26 29% 25 13% 25 80% 22 23 50% 50% 21 70% 57% 67% 67% Above Target 20 14% 18 60% 18 At Target 50% 15 13

40% 80% (Months) 75% Below Target 10 30% 57% 50% 50% 20% 43%

Proportion of Funds Closed 33% 33% 5

10% Time Spent on the Road Average

0% 0 2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014 2015 YTD YTD Year of Final Close Year of Final Close Source: Preqin Infrastructure Online Source: Preqin Infrastructure Online

Fundraising is often a lengthy process, with funds closed since Fig. 5: Breakdown of Asia-Focused Fundraising: 2008 spending an average of 21 months in market. The average International vs. Domestic Fund Managers, 2008 - 2015 YTD time managers spent marketing their offerings peaked in 2012 (As at 28 May 2015) (26 months), although this has fallen to 23 months for funds closed last year (Fig. 4). Funds closed so far this year spent an 100% average of 18 months on the road, with some managers able 90% to quickly attract sufﬁ cient capital to reach a ﬁ nal close; one 80%

recent example being Singapore-based Equis Funds Group’s 70% 67% Equis Asia Fund II, which reached a ﬁ nal close in February 2015, 73% 60% 75% 77% 78% Domestic Fund having spent just nine months fundraising. 83% Managers 50% 100% 100% The vast majority of Asia-focused unlisted infrastructure funds 40% International Fund Managers closed since 2008 have been raised by Asia-headquartered 30%

fi rms. The proportion of funds closed managed by international 20% fund managers peaked in 2008 at 33%, whereas in 2014, only Proportion of Funds Closed 33% 25% 27% 23% 22% 17% of funds that closed that year are managed by international 10% 17% fi rms (Fig. 5). 0% 2008 2009 2010 2011 2012 2013 2014 2015 YTD The 10 largest Asia-focused funds that have reached a fi nal Year of Final Close close since 2013 are displayed in Fig. 6. KIAMCO Power Source: Preqin Infrastructure Online Energy Private Fund Special Asset Trust 3, managed by KDB Infrastructure Investments Asset Management Company, tops February for investment in core Asian infrastructure assets with the list, having reached a fi nal close in March 2013 on KRW 2.45tn a particular focus on the energy sector within China, Indonesia, ($2.2bn). The fund makes equity, mezzanine and structured Malaysia, the Philippines, Thailand and Vietnam. Equis Funds debt investments in greenfi eld power plant and renewable Group has raised the largest number of funds (three) in the top energy infrastructure assets throughout South Korea, Malaysia, 10 since 2013, with Asia Fund II, Japan Solar Fund and Equis Pakistan and Kazakhstan. The largest fund to close in 2015 was Direct Investment Fund raising a combined $2bn. the aforementioned Equis Asia Fund II, which closed on $1bn in

Fig. 6: 10 Largest Asia-Focused Funds Closed, 2013 - 2015 YTD (As at 28 May 2015)

Fund Firm Geographic Focus Final Close Date Fund Size (mn) KIAMCO Power Energy Private KDB Infrastructure Investments Kazakhstan, Malaysia, Mar-13 2,450,000 KRW Fund Special Asset Trust 3 Asset Management Company Pakistan, South Korea Suzhou International Urban Construction Fund Development Venture Capital China Apr-13 10,000 CNY Holding China, Indonesia, Malaysia, Equis Asia Fund II Equis Funds Group Feb-15 1,000 USD Philippines, Thailand, Vietnam Sunvision Capital Urban PPP Sunvision Capital China Dec-14 6,000 CNY Infrastructure Fund India Infrastructure Fund II IDFC Alternatives India Oct-14 894 USD Macquarie Everbright Greater Macquarie Infrastructure and Greater China Mar-13 870 USD China Infrastructure Fund Real Assets (MIRA) Japan Solar Fund Equis Funds Group Japan Sep-14 720 USD KIAMCO Road Investment KDB Infrastructure Investments Private Fund Special Asset Trust South Korea Nov-13 446,900 KRW Asset Management Company 2 Equis Direct Investment Fund Equis Funds Group Asia Feb-15 300 USD China Resources Urban Car China Resources Investment China Feb-13 265 USD Park Investment Partnership Enterprises

Source: Preqin Infrastructure Online

Preqin’s Asian Fundraising Data: A Vital Tool

Preqin’s Infrastructure Online contains comprehensive proﬁ les for over 100 Asia-focused funds closed historically, including information on target and ﬁ nal close sizes, interim closes, known investors, investment preferences and much more.

For more information, please visit: www.preqin.com/infrastructure

Funds in Market

The number of Asia-focused unlisted infrastructure funds in Fig. 7: Asia-Focused Unlisted Infrastructure Funds in Market market has ﬂ uctuated since May 2011, with May 2012 witnessing over Time, May 2011 - May 2015 a peak of 27 funds in market targeting aggregate capital commitments of $12.1bn (Fig. 7). As of May 2015, the lowest 30 number of funds (16) are in market since 2011, targeting $9.5bn. 27 25 Infrastructure fund managers are often less experienced 21 than those in other asset classes, due to the relatively recent 20 20 19 No. of Funds emergence of infrastructure as a distinct asset class. This Raising is particularly true in Asia, where infrastructure is even less 16 15 developed than in Europe or Australia. As a result, 69% of 13.1 Aggregate Asia-focused unlisted infrastructure funds in market are being 12.1 Target Capital ($bn) 9.8 9.5 raised by ﬁ rst-time fund managers (Fig. 8). However, as more 10 8.7 experienced managers are more likely to set higher fundraising

targets, those fund managers that have raised two or more 5 funds previously account for 60% of the aggregate target capital. Furthermore, only 6% of funds in market and approximately a quarter of aggregate target capital are accounted for by fund 0 May-11 May-12 May-13 May-14 May-15 managers that have had six or more previous vehicles. Source: Preqin Infrastructure Online With a diffi cult fundraising environment, it is evident that many Fig. 8: Breakdown of Asia-Focused Unlisted Infrastructure fund managers raising Asia-focused infrastructure vehicles may Funds in Market by Manager Experience (As at 28 May struggle to gain suffi cient fundraising momentum to achieve a 2015) fi nal close; 25% of funds on the road have not yet held an interim 100% close. Additionally, half of the funds currently in market have 6% been fundraising for more than three years and 67% have been 90% 24% in market for over two years. 13% 80% 6 or More Funds 13% Raised Previously The 10 largest funds in market as of May 2015 are shown in 70% Fig. 9, demonstrating the range of vehicles targeting capital. 60% 32% 2-5 Funds Raised The largest Asia-focused vehicle in market is Macquarie Asia Previously 50% Infrastructure Fund, which is targeting $2.25bn to predominantly Second-Time Fund 40% 4% focus on core economic infrastructure assets across Asia. The Manager largest fund targeting capital for investment in a single country 69%

Proportion of Total 30% is IL&FS Infrastructure Debt Fund which is targeting $2bn to First-Time Fund 20% 40% ﬁ nance infrastructure projects in India. The fund will be used for Manager purchasing loans that banks and other ﬁ nancial institutions have 10% given to companies for developing infrastructure projects, such 0% as power plants, roads and airports. No. of Funds in Market Aggregate Target Capital Source: Preqin Infrastructure Online Fig. 9: 10 Largest Asia-Focused Unlisted Infrastructure Funds in Market (As at 28 May 2015)

Fund Firm Geographic Focus Target Size (mn) Macquarie Infrastructure and Real Assets Macquarie Asia Infrastructure Fund Asia 2,250 USD (MIRA) IL&FS Infrastructure Debt Fund IL&FS Investment Managers India 2,000 USD IIFCL Infrastructure Debt Fund IIFCL Asset Management Company India 1,000 USD JPMorgan Asian Infrastructure & Related JPMorgan - Infrastructure Investments Group Asia 1,000 USD Resources Opportunity Fund II L&T Investment Partners L&T Investment Partners Advisors India 500 USD Prostar Capital Asia Energy Infrastructure Fund Prostar Capital Asia, Middle East 500 USD India Infrastructure Advantage Fund ICICI Venture Funds Management India 400 USD ASEAN, Cambodia, Laos, Indochina Energy Holding Saigon Asset Management Corporation (SAM) 300 USD Vietnam IDI Infrastructures II IDI Infrastructures ASEAN, Far East, Japan 20,000 JPY Core Infrastructure India Fund Kotak Mahindra UK India 250 USD

Source: Preqin Infrastructure Online

Fund Managers

Preqin’s Infrastructure Online contains detailed information target opportunities across the whole of Asia, while 11% focus on 56 Asia-headquartered infrastructure fund managers. These their investments on the ASEAN region. fund managers are, in many cases, relatively inexperienced, with 91% of fund managers based in the region currently raising their Capital committed to unlisted infrastructure funds that had not fi rst fund or having only raised one or two funds previously (Fig. yet been called-up by Asia-based managers reached an all-time 10). When looking at the amount of capital these managers have high in December 2014, with $9.6bn of dry powder available to raised for unlisted infrastructure vehicles in the last 10 years, fund managers. The growth of Asia-based dry powder has been the majority (69%) have raised less than $500mn in institutional particularly rapid, increasing by 50% from December 2013 to investor capital (Fig. 11). This demonstrates that funds focusing December 2014, a refl ection of the evolution and prominence of primarily on Asia tend to attract smaller amounts of investor the asset class in the region. capital due to the relative inexperience of the fund managers based in the region. Twenty percent of fi rms have secured over The largest Asia-based managers are shown in Fig. 12, listed $1bn in capital commitments. by total capital raised in the last 10 years for closed-end infrastructure vehicles. Topping the list is South Korea-based India (25%) and China (21%) are the investment focus for the KDB Infrastructure Investments Asset Management Company, largest proportions of Asia-headquartered fund managers, which Singapore-based Equis Funds Group and India-based IDFC is unsurprising due to the large demand for infrastructure in these Alternatives which have raised $5bn, $2.7bn and $1.8bn rapidly developing economies. A notable 18% of fund managers respectively for infrastructure investment.

Fig. 11: Breakdown of Asia-Based Fund Managers by Total Fig. 10: Breakdown of Asia-Based Fund Managers by Capital Raised for Unlisted Infrastructure in the Last 10 Experience Years

80% 69% 70% 7% 2% First-Time Fund 60% 11% Manager 50% 1-2 Funds Raised 40% Previously 30% 3-4 Funds Raised Previously 20% 17% 11% 5 Funds or More Proportion of Fund Managers 10% 3% 80% Raised Previously 0% Less than $500-999mn $1-4.9bn $5bn or More $500mn Total Capital Raised in the Last 10 Years Source: Preqin Infrastructure Online Source: Preqin Infrastructure Online

Fig. 12: 10 Largest Asia-Based Infrastructure Fund Managers by Aggregate Capital Raised for Unlisted Infrastructure Funds in the Last 10 Years

Total Capital Raised in Estimated Dry Firm Headquarters Last 10 Years ($bn)* Powder ($bn) KDB Infrastructure Investments Asset Management Company South Korea 5.0 2.6 Equis Funds Group Singapore 2.7 1.9 IDFC Alternatives India 1.8 0.8 Suzhou International Development Venture Capital Holding China 1.6 1.2 KB Asset Management South Korea 1.2 0.0 China Guangdong Nuclear Power Fund Management China 1.0 0.1 China-ASEAN Capital Advisory Company Hong Kong 1.0 0.1 Sunvision Capital China 1.0 0.9 IL&FS Investment Managers India 0.9 0.3 Saratoga Capital Group Indonesia 0.8 0.2

*Capital raised for closed-end unlisted infrastructure funds. Does not include capital raised for open-ended funds or Source: Preqin Infrastructure Online separate accounts.

Institutional Investors

Banks and insurance companies are the most prominent Asia- to infrastructure of less than 5% of AUM, with 16% of investors based infrastructure investors, accounting for 42% of investors in holding less than 1% in infrastructure. Encouragingly however, the region (Fig. 13). No other investor type comprises over 9% of many investors appear to be below their target allocations to the infrastructure investors based in Asia; prominent investors in other asset class, with 64% targeting 1-4.9% of AUM to infrastructure, regions such as pension funds, foundations and endowment plans and 27% targeting 5-9.9% of their AUM, suggesting capital is likely only make up a combined 15%. Private wealth is an important to ﬂ ow into infrastructure in the future from these investors. aspect of the Asian investor universe, with family ofﬁ ces and wealth managers collectively accounting for 8% of investors in the Japan has the highest number (58) of Asia-based infrastructure region. investors, with these investors holding an aggregate $8.9tn in AUM, the highest for any country in Asia. While China has been With typically larger investors, such as banks and insurance active in the infrastructure asset class recently, the country is home companies, it is unsurprising that 36% of Asia-based infrastructure to only the fourth highest number of infrastructure investors in Asia investors have over $50bn in assets. Only 12% of investors hold (32), although these institutions represent a substantial $6.7tn in less than $1bn in assets. aggregate assets under management, second only to Japan.

The majority (53%) of Asia-based investors allocate capital to the There are a range of Asia-based investors with an interest infrastructure asset class through a distinct infrastructure allocation in unlisted infrastructure, with Fig. 17 displaying a sample of (Fig. 14). However, this still leaves notable proportions of investors institutions that have invested in such funds in recent years. who allocate capital to infrastructure through their private equity This includes State Bank of India, which committed INR 250mn allocation (19%), general alternatives allocation (15%) and real to Golden Gujarat Growth Fund I, which reached a ﬁ nal close in assets allocation (10%). December 2014; and Bank of Tokyo - Mitsubishi UFJ committed $25mn to CapAsia ASEAN Infrastructure Fund III, which closed in As a relatively young asset class, institutional investors will March 2015 and focuses on a range of mid-market infrastructure typically allocate a smaller proportion of assets under management assets in Southeast Asia. (AUM) to infrastructure when compared to other alternatives. Sixty-percent of Asia-based investors have a current allocation

Fig. 13: Breakdown of Asia-Based Institutional Investors in Fig. 14: Breakdown of Asia-Based Institutional Investors in Infrastructure by Type Infrastructure by Source of Allocation

Bank

Insurance Company 4% 3% 4% Corporate Investor 10% Separate Infrastructure 4% 22% Allocation 4% Public Pension Fund Part of Private Equity 5% Investment Company Allocation 15% Asset Manager 6% General Alternatives Government Agency 53% Allocation Private Sector Pension 7% Part of Real Assets 20% Fund Allocation Family Offices 7% 19% Sovereign Wealth Fund Other 8% 9% Wealth Manager

Other

Source: Preqin Infrastructure Online Source: Preqin Infrastructure Online

Institutional Investors: In-Depth Data

Preqin’s Infrastructure Online provides comprehensive information on over 290 Asia-based institutional investors active in infrastructure.

Detailed proﬁ les include current and target allocation to infrastructure, strategy and geographic preferences, future investment plans, previous infrastructure fund commitments and much more. Plus, access direct contact information for key decision makers at these institutions.

For more information, please visit: www.preqin.com/infrastructure

Fig. 15: Breakdown of Institutional Investors’ Current and Fig. 16: Top 10 Asian Countries by Number of Institutional Target Allocations to Infrastructure Investors in Infrastructure

70% Aggregate Assets 64% Headquarters No. of Investors under Management 60% of Investors ($bn) Japan 58 8,938 50% 44% India 56 1,855 Current 40% Allocation South Korea 45 2,863 China 32 6,694 30% 27% Target Allocation Hong Kong 19 272

20% 16% 16% Singapore 15 926 Proportion of Investors 14% Malaysia 14 321 9% 9% 10% Thailand 12 307 0% 0% 0% Philippines 8 164 Less than 1-4.9% 5-9.9% 10-14.9% 15% or Taiwan 7 567 1% More Source: Preqin Infrastructure Online Allocation to Infrastructure (As a % of AUM) Source: Preqin Infrastructure Online

Fig. 17: Sample of Asia-Based Institutional Investor Commitments to Unlisted Infrastructure Funds

Investor Headquarters Type Fund Firm Vintage Year State Bank of India India Bank Golden Gujarat Growth Fund I GVFL 2012 SK Group South Korea Corporate Investor ELDORADO Latam Fund CFC-SK ElDorado LATAM 2015 Bank of Tokyo - Mitsubishi CapAsia ASEAN Japan Bank CapAsia 2013 UFJ Infrastructure Fund III AMP Capital Global China Life Investment China Investment Company AMP Capital Investors 2013 Infrastructure Debt Fund II

Source: Preqin Infrastructure Online

Fig. 18: Sample of Asia-Based Institutional Investors Targeting Unlisted Infrastructure in the Next 12 Months

Investor Headquarters Type Investment Plans for the Next 12 Months Plans to invest between $20mn and $30mn (JPY 2.4bn and 3.6bn) across AISIN Employees' Pension Private Sector two or three unlisted infrastructure vehicles. Geographically, the pension Japan Fund Pension Fund fund has a preference for North America, West Europe and OECD countries. Looking to invest between $10mn and $30mn (KRW 10.7bn and 32.1bn) Samsung Fire & Marine South Korea Insurance Company in OECD-focused unlisted infrastructure funds utilizing debt and primary Insurance strategies. It will be more inclined towards debt vehicles. Expects to make one or two new commitments to primary unlisted infrastructure funds targeting brownﬁ eld assets in renewable energy Kumpulan Wang Persaraan Malaysia Public Pension Fund sectors in Europe and both renewable energy and core infrastructure sectors in North America.

Source: Preqin Infrastructure Online

Interested in Accessing Free Alternative Assets Data and Research Tools?

Covering infrastructure, private equity, hedge funds, real estate and private debt, Preqin’s Research Center Premium is a free online service providing access to a wide range of additional free data and tools, including:

• Up-to-date charts and league tables powered by live data from Preqin’s online products • Research reports and newsletters • Fund performance benchmarking tools • Slide decks from recent Preqin presentations at conferences

For more information, or to register for free, please visit: www.preqin.com/rcp

Deals

Preqin’s Infrastructure Online service contains details of over In terms of country, India has represented the largest proportion 11,200 completed infrastructure deals, including 1,319 involving of Asian infrastructure deals since 2010; 30% of transactions have Asian assets. Extensive profi les for these transactions feature taken place there in the time period (Fig. 21). This is followed by information on size, total equity and debt invested, current China (16%), Japan (8%), Indonesia (7%) and South Korea (7%) ownership stakes, service providers and much more. Fig. 19 picking up notable proportions of deals since 2010. So far in 2015, reveals that the annual number of infrastructure deals completed 43% of transactions have taken place in India, with deals in the in Asia has varied since 2008, reaching peaks of 116 deals in 2008 Philippines representing the next highest proportion (13%) of all and 2010. Last year, 77 deals were completed and 23 deals have deals in Asia. been completed so far this year, although these fi gures are likely to rise as more information becomes available. Generally, smaller transaction sizes are common for Asian infrastructure assets; infrastructure deals completed under Reported aggregate deal value has shown considerable growth in $100mn have represented approximately half of all Asian recent years, up from $8.2bn in 2012 to $15.3bn and $15.1bn in transactions in every year since 2010, and deals under $500mn 2013 and 2014 respectively. Preqin also calculates an estimated have represented 76% to 94% of transactions in the time period. aggregate deal value using an estimate for deals where the size 2013 and 2014 had the highest proportion of large deals, with 11% has not been disclosed; from 2012 to 2013, this fi gure rose from and 10% of all Asian deals at or above $1bn in value respectively. $16.4bn to $32bn. As a result, average deal sizes are increasing (Fig. 20); the average Asian infrastructure deal size has more than doubled from $175mn in 2012 to $368mn in 2014.

Fig. 19: Number and Aggregate Value of Asian Fig. 20: Average Asian Infrastructure Deal Size, 2008 - 2015 Infrastructure Deals, 2008 - 2015 YTD (As at 28 May 2015) YTD (As at 28 May 2015)

140 35 400

Aggregate Deal Value ($bn) 368 116 116 120 30 350 100 115 100 94 25 300 292 80 278 80 77 20 250 237 60 15 219

No. of Deals 200 40 10 175 160 20 23 5 150 120 0 0 100 2008 2009 2010 2011 2012 2013 2014 2015 Deal Size ($mn) Average YTD 50 No. of Deals Reported Aggregate Deal Value ($bn) 0 Estimated Aggregate Deal Value ($bn) 2008 2009 2010 2011 2012 2013 2014 2015 YTD Source: Preqin Infrastructure Online Source: Preqin Infrastructure Online Fig. 21: Breakdown of Asian Infrastructure Deals by Fig. 22: Breakdown of Asian Infrastructure Deals by Country, 2010 - 2015 YTD (As at 28 May 2015) Transaction Value, 2010 - 2015 YTD (As at 29 May 2015)

100% 2% 2% India 5% 6% 4% 6% 2% 11% 10% 0% 90% China 5% 9% 15% 80% 2% Japan 2% 36% 33% 40% 44% $1bn or More 4% 30% Indonesia 70% 29% 27% 4% South Korea 60% $500-999mn Philippines 50% 6% $100-499mn Thailand 40% Less than $100mn 6% Vietnam Proportion of Deals 30% 57% 59% 55% 53% 49% 50% Singapore 20% 7% 16% Malaysia 10% 7% 8% Pakistan 0% Other 2010 2011 2012 2013 2014 2015 YTD Source: Preqin Infrastructure Online Source: Preqin Infrastructure Online

Utilities, renewable energy and transportation sectors account for Fig. 23: Breakdown of Asian Infrastructure Deals by the largest proportions of completed transactions in Asia in the Industry, 2010 - 2015 YTD (As at 29 May 2015) period 2010 to 2015 YTD, at 27%, 25% and 22% respectively (Fig. 23). Social deals, such as those in educational facilities, 100% 8% 5% 3% 4% 4% 11% 4% 4% government buildings or healthcare, accounted for the lowest 90% 5% 10% 13% 5% Other 6% 9% proportion (5%) of completed transactions in this timeline. 7% 8% 80% 6% 4% 5% 6% 4% Telecoms Secondary stage transactions represent the majority of deals in 11% 9% Asia (54%), with greenfi eld deals accounting for a further 34% and 70% 22% 28% 16% Social brownfi eld assets representing 12% of deals. 60% 31% 40% 25% 50% Energy Power plant deals take up six spaces in the table of the top 10 26% 40% 24% Asian infrastructure deals since 2013, including the largest and Utilities 38% second largest transactions (Fig. 24). The largest deal was the Proportion of Deals 30% 23% 26% 3B Power Plant, worth MYR 10.8bn, with the 1MDB-Mitsui joint 16% Renewable Energy 20% 35% venture selected as the preferred bidder via an open tender 30% Transport 10% 19% 20% initiated by the Energy Commission of Malaysia. 3B Power Plant 17% 13% is a 2x 1,000MW coal-fi red power facility located in the town of 0% Port Dickson, Negeri Sembilan, Malaysia and is scheduled to 2010 2011 2012 2013 2014 2015 commence commercial operation in 2018/2019. The largest deal YTD so far in 2015 is the $2.8bn Ye Township Power Plant, a 1,280MW Source: Preqin Infrastructure Online coal power plant situated in Southern Myanmar’s Mon state. The power plant is equipped with Japanese Ultra Super Critical technology and supplies electricity to Myanmar’s national grid. In April 2015, Toyo-Thai Corporation won the bid for the 30-year Build-Transfer-Operate (BTO) concession of the power plant, fi nanced 75% via debt and 25% equity.

Fig. 24: Sample of Notable Completed Asian Infrastructure Deals, 2013 - 2015 YTD (As at 29 May 2015)

Asset Location Industry Investor(s) Deal Size (mn) Stake (%) Date 1Malaysia Development Berhad, 3B Power Plant Malaysia Power Plants Mitsui & Co - Innovation & Corporate 10,800 MYR 100 Feb-14 Development Business Unit Ye Township Power Plant Myanmar Power Plants Toyo-Thai Corporation 2,800 USD 100 Apr-15 Korea Electric Power Corporation, Nghi Son 2 Power Plant Vietnam Power Plants 2,300 USD 100 Mar-13 Marubeni Corporation BTS SkyTrain Thailand Railroads BTS Group 61,399 THB 100 Apr-13 Vinh Tan 4 Power Plant Vietnam Power Plants Unidentifi ed Investor/s 1,690 USD 100 Mar-14 Ayala Corporation, Macquarie Infrastructure and Real Assets Manila Light Rail Transit 1 Philippines Railroads 1,440 USD 100 Sep-14 (MIRA), Metro Pacifi c Investments Corporation Ulaanbaatar Thermal GDF SUEZ, Newcom Group, POSCO Mongolia Power Plants 1,200 USD 100 Oct-13 Power Plant ENERGY, Sojitz Corporation Taiwan Broadband Macquarie Infrastructure and Real Taiwan Telecommunications 1,390 SGD 100 May-13 Communications Group Assets (MIRA), Unidentifi ed Investor/s Cable Television Japan Cablenet Japan Sumitomo Corporation 110,000 JPY 100 Nov-13 Networks GE Energy Financial Services, Toyo Setouchi Solar Power Japan Power Plants Engineering Corporation, Unidentifi ed 1,100 USD 100 Oct-14 Plant Investor/s

Source: Preqin Infrastructure Online

Looking to Track Asian Infrastructure Deal Activity?

View detailed information on more than 1,300 Asian transactions on Preqin Infrastructure Online, including information on the type of infrastructure asset and location, buyers and sellers, data on the equity invested and the percentage stake acquired, plus information on the deal date, structure and duration, as well as debt providers and legal and ﬁ nancial advisors.

For more information, or to arrange a demonstration, please visit: www.preqin.com/infrastructure

China, Hong Kong, Macau & Taiwan

Fig. 26: Number and Aggregate Value of Infrastructure Fig. 25: Annual Greater China-Based Unlisted Infrastructure Deals Completed in Greater China, 2006 - 2015 YTD (As at Fundraising, 2008 - 2015 YTD (As at 28 May 2015) 28 May 2015)

6 45 10 42 40 9 5 5 Aggregate Deal Size ($bn) 35 8 7 4 No. of Funds 30 Closed 6 25 23 3 5 Aggregate 20 17 17 4 Capital 15 22 Raised ($bn) No. of Deals 15 13 2 1.9 3 10 1.4 10 9 7 2 1.0 1 1.0 1 5 3 1

0 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2008-2009 2010-2011 2012-2013 2014-2015 YTD YTD Year of Final Close No. of Deals Reported Aggregate Deal Size ($bn) Source: Preqin Infrastructure Online Source: Preqin Infrastructure Online

Fig. 27: Breakdown of Infrastructure Deals Completed in Greater China by Transaction Value, 2010 - 2015 YTD (As at Fig. 28: Breakdown of Greater China-Based Infrastructure 28 May 2015) Investors by Assets under Management

100% 0% 0% 35% 5% 31% 90% 23% 21% 30% 29%

80% 25% 42% 70% 60% 20% 29% $500mn or More 18% 18% 60% 15% 50% $100-499mn 10% 40% 77% Less than $100mn Proportion of Investors 5% 4% 30% Proportion of Deals 53% 0% 50% 0% 20% 40%

10% $100bn or More $500mn $1-9.9bn Less than

0% $50-100bn $10-49.9bn

2008-2009 2010-2011 2012-2013 2014-2015 $500-999mn YTD Assets under Management Source: Preqin Infrastructure Online Source: Preqin Infrastructure Online

Fig. 29: Five Largest Greater China-Based Unlisted Infrastructure Funds Closed, 2008-2015 YTD (As at 28 May 2015)

Fund Firm Final Close Size (mn) Final Close Date Headquarters Suzhou International Development Urban Construction Fund 10,000 CNY Apr-13 China Venture Capital Holding Guangdong Nuclear Power and New China Guangdong Nuclear Power Fund 7,000 CNY Nov-10 China Energy Industrial Investment Fund I Management China-ASEAN Investment China-ASEAN Capital Advisory Company 1,000 USD Dec-09 Hong Kong Cooperation Fund Sunvision Capital Urban PPP Sunvision Capital 6,000 CNY Dec-14 China Infrastructure Fund China Ship Fund I China Ship Fund Management 2,850 CNY Dec-09 China

Source: Preqin rastructure Online

Japan & South Korea

Fig. 31: Number and Aggregate Value of Infrastructure Fig. 30: Annual Northeast Asia-Based Unlisted Infrastructure Deals Completed in Northeast Asia, 2008 - 2015 YTD (As at Fundraising, 2008 - 2015 YTD (As at 28 May 2015) 28 May 2015)

16 30 3 14 14 13 25 24 3 Aggregate Deal Size ($bn) 12 22 No. of Funds 20 2 10 Closed

8 15 2 Aggregate 13 6 Capital 11 11 Raised ($bn) No. of Deals 10 1 8 8 4 3.7 2.3 5 1 2 1 2 0.04 0 0.0 0 0 0 2008-2009 2010-2011 2012-2013 2014-2015 YTD 2008 2009 2010 2011 2012 2013 2014 2015 YTD Year of Final Close No. of Deals Reported Aggregate Deal Size ($bn) Source: Preqin Infrastructure Online Source: Preqin Infrastructure Online Fig. 32: Breakdown of Infrastructure Deals Completed in Northeast Asia by Transaction Value, 2010 - 2015 YTD (As at Fig. 33: Breakdown of Northeast Asia-Based Infrastructure 28 May 2015) Investors by Assets under Management

100% 30% 8% 9% 10% 90% 25% 25% 23% 22% 22% 80% 25% 27% 50% 20% 70% 35% $500mn or More 60% 15%

50% $100-499mn 10% 40%

Less than $100mn Proportion of Investors 5% 4% 4% 67% 30% 64% Proportion of Deals 55% 50% 0% 20%

10% $100bn or More $500mn $1-9.9bn 0% Less than $50-100bn $10-49.9bn

2008-2009 2010-2011 2012-2013 2014-2015 $500-999mn YTD Assets under Management Source: Preqin Infrastructure Online Source: Preqin Infrastructure Online

Fig. 34: Five Largest Completed Infrastructure Deals in Northeast Asia, 2013-2015 YTD (As at 28 May 2015)

Deal Size Stake Asset Location Industry Investor(s) Date (mn) (%) Cable Television 110,000 Japan Cablenet Japan Sumitomo Corporation 100 Nov-13 Networks JPY Setouchi Solar GE Energy Financial Services, Toyo Engineering 1,100 Japan Power Plants 100 Oct-14 Power Plant Corporation, Unidentifi ed Investor/s USD Seoul Subway Hanwha Life Insurance, Heungkuk Life Insurance, 746,400 Line 9, Section South Korea Railroads Kyobo Life Insurance, Shinhan Bank, Unidentifi ed 100 Oct-13 KRW 1 Investor/s 20,000 Tahara PV Plant Japan Solar Power Mitsubishi Corporation, Unidentifi ed Investor/s 100 Jan-13 JPY Handa Biomass Biomass/Biofuel Japan Sumitomo Corporation 197 USD 100 Jul-14 Power Plant Facility

Source: Preqin Infrastructure Online

Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, Brunei, Cambodia, Myanmar & Laos

Fig. 36: Number and Aggregate Value of Infrastructure Fig. 35: Annual ASEAN-Based Unlisted Infrastructure Deals Completed in ASEAN, 2006 - 2015 YTD (As at 28 May Fundraising, 2008 - 2015 YTD (As at 28 May 2015) 2015)

4 1,600 Aggregate Capital Raised ($mn) 50 47 10 1,400 1,400 45 9 40 Aggregate Deal Size ($bn) 1,317 3 40 8 3 1,200 36 3 35 7 1,000 2 30 29 29 6 2 800 27 25 24 5 720 600 No. of Funds 20 4 1111 1 1 400 No. of Deals 15 15 13 3 273 287 200 10 2 6 147 152 164 0 0 5 1 2008 2009 2010 2011 2012 2013 2014 2015 YTD 0 0 Year of Final Close 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD No. of Funds Closed Aggregate Capital Raised ($mn) No. of Deals Reported Aggregate Deal Size ($bn)

Source: Preqin Infrastructure Online Source: Preqin Infrastructure Online

Fig. 37: Breakdown of Infrastructure Deals Completed in ASEAN by Transaction Value, 2008 - 2015 YTD (As at 28 Fig. 38: Breakdown of ASEAN-Based Infrastructure Investors May 2015) by Assets under Management

100% 35% 13% 15% 31% 90% 23% 30% 32% 7% 25% 80% 25% 70% 26% $500mn or More 20% 60% 31% 15% 13% 13% $100-499mn 50% 37% 10% 10% 8% 40% 80% Less than $100mn Proportion of Investors 5% 30%

Proportion of Deals 59% 46% 0% 20% 32% 10% $100bn or More $500mn $1-9.9bn Less than

0% $50-100bn $10-49.9bn

2008-2009 2010-2011 2012-2013 2014-2015 $500-999mn YTD Assets under Management Source: Preqin Infrastructure Online Source: Preqin Infrastructure Online

Fig. 39: Five Largest ASEAN-Based Unlisted Infrastructure Funds Closed, 2013-2015 YTD (As at 28 May 2015)

Fund Firm Final Close Size (mn) Final Close Date Fund Focus Equis Asia Fund II Equis Funds Group 1,000 USD Feb-15 Asia Japan Solar Fund Equis Funds Group 720 USD Sep-14 Japan Equis Direct Investment Fund Equis Funds Group 300 USD Feb-15 Asia Armstrong South East Asia Clean Armstrong Asset Management 164 USD Nov-13 ASEAN Energy Fund CapAsia ASEAN Infrastructure Fund CapAsia 100 USD Mar-15 ASEAN III

Source: Preqin Infrastructure Online

Bangladesh, India, Pakistan, Nepal & Sri Lanka

Fig. 41: Number and Aggregate Value of Infrastructure Fig. 40: Annual South Asia-Based Unlisted Infrastructure Deals Completed in South Asia, 2006 - 2015 YTD (As at 28 Fundraising, 2009 - 2014 May 2015)

8 50 12 44 45 43 Aggregate Deal Size ($bn) 7 41 7 10 40 37 37 37 35 33 6 32 32 8 No. of Funds 5 30 5 Closed 25 6

4 Aggregate 20

No. of Deals 4 Capital 15 3 Raised ($bn) 11 10 2 2 1.7 1.8 5 1 0 0 1 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 0.2 YTD 0 No. of Deals 2009-2010 2011-2012 2013-2014 Reported Aggregate Deal Size ($bn) Estimated Aggregate Deal Size ($bn) Year of Final Close Source: Preqin Infrastructure Online Source: Preqin Infrastructure Online

Fig. 42: Breakdown of Infrastructure Deals Completed in South Asia by Transaction Value, 2008 - 2015 YTD (As at 28 Fig. 43: Breakdown of South Asia-Based Infrastructure May 2015) Investors by Assets under Management

100% 35% 33% 7% 7% 4% 5% 14% 90% 4% 30% 29% 26% 21% 24% 80% 38% 38% 38% 19% 25% 70% 20% $500mn or More 60% 16% 15% 50% $100-499mn 89% 10% 8% 8% 40% Less than $100mn 6% 72% 74% 71% Proportion of Investors 67% 5% 30% 63% 63% Proportion of Deals 58% 0% 20%

10% $100bn or More $500mn $1-9.9bn 0% Less than $50-100bn $10-49.9bn

2008 2009 2010 2011 2012 2013 2014 2015 $500-999mn YTD Assets under Management Source: Preqin Infrastructure Online Source: Preqin Infrastructure Online

Fig. 44: Five Largest South Asia-Based Unlisted Infrastructure Funds Closed, 2012-2015 YTD (As at 28 May 2015)

Fund Firm Final Close Size (mn) Final Close Date Fund Focus India Infrastructure Fund II IDFC Alternatives 894 USD Oct-14 India APG – Piramal Enterprises Strategic Piramal Enterprises 750 USD Jul-14 India Investment Alliance India Infrastructure Development Fund UTI Capital 214 USD May-12 India LICHFL Urban Development Fund LICHFL Asset Management 5,000 INR Feb-13 India Golden Gujarat Growth Fund I GVFL 4,260 INR Dec-14 India

Source: Preqin Infrastructure Online

Preqin: Global Data and Intelligence

If you want any further information, With global coverage and detailed information on all aspects of the infrastructure asset or would like a demo of our class, Preqin’s industry-leading Infrastructure Online service keeps you up-to-date on all products, please contact us: the latest developments in the infrastructure universe. New York: Examine infrastructure investment trends One Grand Central Place Search detailed information on over 11,700 infrastructure transactions and bids historically, 60 E 42nd Street including buyers and sellers, equity invested, debt provided and the percentage stake Suite 630 acquired. Identify key geographical regions and sectors that are attracting infrastructure New York investment. NY 10165

Track infrastructure assets Tel: +1 212 350 0100 Fax: +1 440 445 9595 Analyze ownership information, and past transaction history for more than 6,500 infrastructure assets across the globe, including asset location, project stage and industry. London:

Find fi rms investing in infrastructure 3rd Floor Vintners’ Place Search for fi rms actively targeting infrastructure projects and assets, with detailed profi les 68 Upper Thames Street on fund managers, institutional investors and trade buyers from around the world, including London background, key contacts and past deal activity. EC4V 3BJ

Identify service providers Tel: +44 (0)20 3207 0200 Fax: +44 (0)87 0330 5892 Track over 990 debt providers, law fi rms, fi nancial advisors and other service providers working on infrastructure transactions. View service providers working on specifi c deals. Singapore:

Source new investors for funds and co-investments One Finlayson Green #11-02 Find the most relevant investors, with access to detailed proﬁ les for over 2,400 institutional Singapore 049246 investors actively investing in unlisted infrastructure, including insurance companies, pension funds, family ofﬁ ces, foundations, wealth managers, endowment plans, banks and Tel: +65 6305 2200 more. Fax: +65 6491 5365

Benchmark performance San Francisco:

Identify which fund managers have the best track records with performance benchmarks 1700 Montgomery Street for infrastructure funds and view performance details for over 200 individual named funds. Suite 134 San Francisco CA 94111

Find out how Preqin’s infrastructure products and services can Tel: +1 415 835 9455 help you: Fax: +1 440 445 9595

www.preqin.com/infrastructure Email: [email protected] Web: www.preqin.com