Phenix Capital Group has released today its Impact Report on Real Estate and Infrastructure impact funds, revealing the number of impact funds targeting Infrastructure has increased. On the other hand, the number of real estate funds peaked in 2019 and 2020, but had a considerable decrease in 2021.
Real Estate and Infrastructure funds represent 17 % of funds from our Impact Database. With this report, Phenix Capital Group provides an overview and analysis of the development of these asset classes in the last years.
Key Report takeaways
- The number of impact funds targeting Infrastructure has increased on average, mostly since 2017. For Real Estate, the number of funds launched peaked in 2019 and 2020, followed by a considerable decrease in 2021.
- In general, funds targeting the infrastructure asset class have higher capital commitments and target sizes than those targeting Real Estate. This is perhaps unsurprising considering that Infrastructure projects are often larger in size and resource commitments than Real Estate projects.
- These two asset classes are driving capital commitments mostly towards developed markets.
Regarding the Sustainable Development Goals, there is a clear preference for climate-related SDGs. Real Estate has raised the most capital towards SDG 11 (Sustainable Cities & Communities). For Infrastructure, most capital commitments are towards SDG 7 (Affordable and Clean Energy).
Currently, Private equity is the asset class that is fundraising the most towards Circular Economy. There are open and evergreen funds available in all regions, with Western Europe and North America having the largest total fundraising targets.