Q3

2024

GLOBAL
Real Assets Report
 Contents
Overview 3 PitchBook Data, Inc.
Nizar Tarhuni Executive Vice President of Research
Spotlight: Infrastructure Funds 5 and Market Intelligence
Fuel the Energy Transition
Daniel Cook, CFA Head of Quantitative Research
Infrastructure 9

Natural resources 15 Institutional Research Group

Analysis

Anikka Villegas
Senior Analyst, Fund Strategies &
Sustainable Investing
anikka.villegas@pitchbook.com

Juliet Clemens
Analyst, Fund Strategies
juliet.clemens@pitchbook.com

Data

Sara Good
Data Analyst

pbinstitutionalresearch@pitchbook.com

Publishing
Report designed by Jenna O’Malley

Published on December 9, 2024

Real assets horizon IRRs
Click here for PitchBook’s report methodologies.
1-year 3-year 5-year 10-year 15-year 20-year
Click here for PitchBook’s private market glossary.
Real assets 9.2% 13.9% 8.8% 7.7% 7.8% 8.0%

Infrastructure 10.5% 12.6% 10.4% 10.1% 9.4% 9.2%

Oil & gas 3.8% 21.3% 6.0% 3.9% 5.7% 6.5%

Other natural
8.3% 9.8% 5.0% 4.5% 4.9% 5.0%
resources

Source: PitchBook • Geography: Global • As of March 31, 2024

Note: The “other natural resources” category contains agriculture, metals & mining,
and timber funds, as well as other real assets & natural resources funds that do
not sit neatly in one bucket.

An accompanying Excel file contains additional charts and all underlying data for
this report.

Note: This report includes real assets debt in the real assets fundraising and performance
data, unlike other reports such as the Global Private Market Fundraising Report and the
Global Fund Performance Report, in which private debt has its own section. As such, totals
may differ from other recent reports.

2 Q3 2024 GLOBAL REAL ASSETS REPORT

 Overview
Real assets fundraising activity
253
222
221 225 217
218 217 217
195

109

61

$106.9 $156.9 $106.3 $125.0 $127.2 $132.6 $145.0 $151.8 $148.0 $132.6 $70.7

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Capital raised ($B) Fund count

Source: PitchBook • Geography: Global • As of September 30, 2024

Three quarters into 2024, real assets fundraising has been Share of real assets capital raised by size bucket
progressing at a moderate pace compared with previous
100% $5B+
years. So far this year, 61 funds have closed on $70.7 billion,
a little over half of the $132.6 billion raised by 109 funds 90% $1B-$5B
in 2023. This slowdown is in large part a reflection of the 80% $500M-$1B
broader fundraising environment. Nearly all asset classes
70% $250M-$500M
are experiencing decelerated fundraising figures as slower
distributions to LPs have left them with less capital to reinvest 60% $100M-$250M
into the market. This has translated to increasingly longer <$100M
50%
time frames for funds to close. The median time to close
for a real assets fund reached 26.2 months through the end 40%
of Q3, much higher than the 18.4 months it took in 2023.
30%
Even among the fastest quartile, real assets funds took 20.9
months to close through this year, compared with just 13.1 20%
months in 2023. 10%

0%
The stagnation in real assets fundraising can also be
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

attributed to fewer funds surpassing the $5 billion mark this

year. While funds over $5 billion collectively raised $79.8
Source: PitchBook • Geography: Global • As of September 30, 2024
billion in 2023, this figure currently stands at just $6.4 billion
in 2024. This decline is to be expected following the several
multibillion-dollar fund closes in 2023. Instead, through Q3, Infrastructure VI, and Brookfield Global Transition Fund II.
75.5% of total capital raised went to funds within the $1 billion Even if these funds do not close in 2024, the presence of these
to $5 billion size category. With that said, there are currently megafunds indicates that appetite and sentiment around
several megafunds in market, including Global Infrastructure infrastructure funds remain quite strong.
Partners V, KKR Global Infrastructure Investors V, EQT

3 Q3 2024 GLOBAL REAL ASSETS REPORT OVERVIEW

 Months to close for real assets funds Share of real assets capital raised by
type (consolidated)
40 100% Infrastructure

35 90% Natural resources

80%
30
70%
25
60%
20 50%

15 40%

10 30%

20%
5
10%
0
0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Slowest quartile Average Median Fastest quartile

Source: PitchBook • Geography: Global • As of September 30, 2024 Source: PitchBook • Geography: Global • As of September 30, 2024

As of Q3, $64.5 billion, or 91.2%, of capital was raised the US will pull back on energy transition infrastructure
across 46 infrastructure vehicles. Many find infrastructure investments in favor of oil & gas. The Trump administration
to be an attractive asset class, as it offers stable returns, has also signaled that it aims to revoke subsidies that have
lower volatility, and potential inflation-hedging benefits. supported energy transition initiatives, but given that some
Additionally, global efforts to transition away from fossil fuels of these subsidies go toward conservative-leaning states,
and toward renewable energy, meet the needs for AI-model such moves may face opposition from Congress.1 Other
compute and connectivity in an increasingly digitized world, geographies, on the other hand, are pivoting to increase
and restructure supply chains in the wake of COVID-19- investments into the energy transition. In the UK, the
pandemic-era breakdowns have kept infrastructure in high Labour government has set forth several ambitious policies
demand. By contrast, just 15 natural resources funds raised under its Green Prosperity Plan to expand its renewable
a total of $6.2 billion. Natural resources funds have seen energy capacity, including spending roughly £5 billion a
declining interest since peaking in 2015 following several year on renewable energy projects, and the establishment
boom-and-bust cycles in the oil & gas and mining sectors. of a state-owned public energy company that will seek
The disparity between interest in infrastructure and natural private investment partners to invest in wind and solar
resources is clear; among the top 15 real assets funds to close developments. 2 As political tides shift, investors and
through Q3, only one natural resources fund managed to allocators are waiting to see what policies may be instituted
make the list. However, there remain players within the sector that will affect the future of infrastructure and natural
that are taking longer-term bets that future commodities resources investments.
pricing will be driven up by current underinvestment.

2024 saw a record number of elections across the world,

which introduced uncertainty for all asset classes, and
real assets is no exception. For instance, the re-election of
President-elect Donald Trump calls into question whether

1: “12 Big Changes Trump Could Make to Climate and Environment Policy,” The Washington Post, Dino Grandoni, Evan Halper, and Maxine Joselow, November 19, 2024.
2: “Government Climate Policy: Economic Impact,” UK Parliament, Edward Scott, October 17, 2024.

4 Q3 2024 GLOBAL REAL ASSETS REPORT OVERVIEW

 SPOTLIGHT

Infrastructure Funds Fuel the

Energy Transition
Energy transition infrastructure fundraising activity
61 58
53 49
51 50
46 50 41
47 45 44
45 $11.5 $35.4
40 $8.6
40
35 $41.4
$11.3 32 39 $52.0
$6.4 $4.6 $17.1 $14.4
11
24
10
23 $12.4

$52.6 $54.2 $52.9 $56.3 $58.6 $81.1 $80.9 $68.7 $87.7 $62.7 $21.2

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Generalist capital raised ($B) Specialist capital raised ($B) Specialist fund count Generalist fund count

Source: PitchBook • Geography: Global • As of June 30, 2024

Note: Definitions of “generalist” and “specialist” and the methodology for this and subsequent charts can be found in the “Methodology” section of the analyst note.

Anikka Villegas Renewable and low-carbon energy, battery storage, and

Senior Analyst, Fund Strategies & Sustainable Investing electric vehicle (EV) charging infrastructure are necessary
to prevent further greenhouse gas emissions, and carbon
Sara Good capture, utilization, and storage is one of the few available
Data Analyst methods of trapping or removing emissions once created. As
global temperatures continue to climb to new heights and the
Note: This spotlight is abridged from our analyst note effects of climate change become more severe, governments
Infrastructure Funds Fuel the Energy Transition. Please see have increasingly made pledges to achieve net-zero carbon
the full note for additional analysis on energy transition emissions by 2050 and made commitments to invest in the
infrastructure fundraising and performance trends as well as a energy transition. This investment can come in the form
market map of the major GPs, public companies, and allocators of government subsidies, such as tax cuts, or of public-
in the energy transition infrastructure space. private partnerships—both of which create opportunities for
infrastructure investors.
Energy transition infrastructure fundraising
At the same time, asset allocators have increasingly sought
Climate change is widely considered one of the greatest out funds investing in energy transition infrastructure, due
existential threats to mankind. For centuries, human activity in part to growing stakeholder pressure to decarbonize—or
has accelerated the process, with fossil fuel usage the reduce the level of carbon emissions related to—portfolios
foremost contributor to the problem. Energy transition and incorporate ESG analysis into the investment process.
infrastructure is a substantial portion of the solution: Over the past decade, more pension funds, universities,

5 Q3 2024 GLOBAL REAL ASSETS REPORT SPOTLIGHT

 Capital raised ($B) by infrastructure funds with Acquisitions of infrastructure GPs with and
and without energy transition investment without energy transition funds
$160 Energy transition 6 GPs with energy
funds transition funds
$140 Non-energy
5 GPs without energy
transition funds
transition funds
$120
4
$100

$80 3

$60
2
$40
1
$20

$0 0
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Source: PitchBook • Geography: Global • As of June 30, 2024 Source: PitchBook • Geography: Global • As of June 30, 2024
Note: In this context, “acquisitions of infrastructure GPs” refers to infrastructure fund
managers being acquired by other asset managers rather than infrastructure fund
managers acquiring assets.

foundations, and other types of institutional investors have in at least some energy transition investment, garnering $892
heard from their pension holders, students, beneficiaries, or billion in cumulative commitments and accounting for nearly
other contributors that these issues matter to them. For some, 80% of capital raised by infrastructure funds. 3 There are
it is for ethical reasons, such as a belief that it is one’s duty to two styles of investment in energy transition infrastructure:
protect the planet and thus further the transition to net-zero. specialist funds, which invest exclusively in energy transition
For others, it is simply good risk management and opportunity assets,4 and generalist funds, which invest in energy
analysis, ensuring that the portfolio will not be overly exposed transition assets alongside other infrastructure sectors, such
to investments that will suffer from their dependence on an as digital or transportation infrastructure. Over the past 15
energy source that will be phased out and that the portfolio years, the proportion of generalist funds that invest in oil &
will have exposure to the energy sources that will benefit from gas infrastructure alongside energy transition infrastructure
more demand. has dwindled as fund managers work to meet the demands
of allocators attempting to satisfy their stakeholders. It is
As a result of increased government focus on the energy not asset owner interests alone, though, that motivated this
transition and heightened allocator interest, private shift. Approximately half of the infrastructure GPs acquired
investment in energy transition infrastructure has grown, by another asset manager from 2014 onward have been
while fundraising for other real assets investment products managers of energy transition funds, accounting for 79.6% of
has fallen. Case in point, from 2014 through the first half of deal value.
2024, 894 private infrastructure vehicles closed that engaged

3 : It is important to underscore that $676.9 billion of the $892 billion was raised by generalist funds that invest in energy transition infrastructure among other infrastructure sectors, so not all capital raised by those funds has
been or will be used for energy transition infrastructure dealmaking.
4: There are some exceptions to this rule. We include funds that almost exclusively invest in energy transition infrastructure in this category, as occasionally GPs will opportunistically target an asset outside of a fund’s investment
theme if they believe it represents an outsized opportunity.

6 Q3 2024 GLOBAL REAL ASSETS REPORT SPOTLIGHT

 Infrastructure fund return dispersion Infrastructure fund return dispersion relative
to benchmark
30% 25%

Outperform
benchmark
25% 20%

20% 15%

15% 10%
5%
10%
0%
5%
-5%

Underperform
0%

benchmark
-10%
-5%
-15%
-10%

Non-energy
transition

Generalist

Specialist

Non-energy
transition

Generalist

Specialist
Non-energy
transition

Generalist

Specialist

Non-energy
transition

Generalist

Specialist

2008 to 2013 2014 to 2019 2008 to 2013 2014 to 2019

Top and bottom quartile range Top decile Median IRR Bottom decile Top and bottom quartile range Top decile Median IRR Bottom decile

Source: PitchBook • Geography: North America and Europe • As of March 31, 2024 Source: PitchBook • Geography: North America and Europe • As of March 31, 2024
Note: Top and bottom decile points for the specialist fund cohort with 2008 to 2013 Note: Top and bottom decile points for the specialist fund cohort with 2008 to 2013
vintages were excluded from this analysis due to a low sample size. vintages were excluded from this analysis due to a low sample size.

Energy transition infrastructure performance In short, the bubble had burst, and energy transition
funds raised during this time period suffered the impact.
Energy transition infrastructure’s fundraising momentum Specialist funds with 2008 to 2013 vintages dramatically
is likely to persist if the sector achieves attractive returns. underperformed their benchmarks, defined as the median
Historically, performance has been challenged. Leading up to return of the fund’s vintage year in its respective geographical
the global financial crisis (GFC), a “green bubble” developed region. While the median returns of generalist funds and
due to speculative investment in renewables. Investors vehicles not investing in renewables were on par with their
believed that fossil fuel supplies were running out. Crude benchmarks, generalist funds experienced more significant
oil prices climbed to never-before-seen highs, with some downside and limited upside given their exposures to
analysts projecting that they would hit $200 per barrel, 5 and renewables, while vehicles not investing in energy transition
renewables were expected to become the cost-effective infrastructure experienced less downside and more dramatic
alternative. However, the GFC caused a pullback in economic upside. On an absolute basis, non-energy transition funds
activity resulting in a reduction in energy demand, so fossil had the highest median IRR. In public equities, similar
fuel prices came back down, making renewables relatively performance trends were also present, with the S&P Global
more expensive again. Then, with increased usage of Clean Energy Index underperforming the Morningstar Global
techniques such as hydraulic fracking and horizontal drilling Energy, Global Utilities, Global Equity Infrastructure, and
as well as the discovery of more fossil fuel reserves in the Global Markets Indexes from 2010 to 2020.
US, supply was found to no longer be nearing its end, and the
anticipated cost advantage for renewables did not materialize However, in recent years, the sector appears to be
until many years later. Further, government spending that experiencing a reversal of fortunes, with technological
had previously supported the renewable energy industry was improvements, increased government support, lower
redirected to help stabilize the economy, putting even more operating costs, and growing energy demand turning the
downward pressure on returns. tides. The median IRR for specialist funds with 2014 to 2019

5: “Goldman, Once Warning of $200 Oil, Sees $45 in 2009,” Reuters, December 12, 2008.

7 Q3 2024 GLOBAL REAL ASSETS REPORT SPOTLIGHT

 Returns for select indexes (rebased to 100 in 2010)
400

350

300

250

200

150

100

50

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

S&P Global Clean Energy Morningstar Global Energy Morningstar Global Utilities
Morningstar Global Markets Morningstar Global Equity Infrastructure
Source: PitchBook • Geography: Global • As of June 30, 2024

vintages reached 9.3%, compared with the median IRR returns. Nonetheless, the industry is largely optimistic about
of 3.6% for vehicles with 2008 to 2013 vintages. Among the future of the space, with secular tailwinds expected to
newer vintage funds, specialists show the potential for push returns up and to the right over the next decade.
substantial upside compared with generalists and funds not
investing in the space. Specialists’ greater return dispersion
compared with generalists is not surprising given the effects
of diversification on fund returns. However, specialists also
experienced less downside than non-energy transition funds,
as measured by median, bottom quartile, and bottom decile
performance against the funds’ respective benchmarks and
by bottom decile performance in absolute terms. Generalists
have shown the most consistency in returns among newer
vintage funds, with the strongest median, top, and bottom
quartile returns.

Among public equities, the S&P Global Clean Energy Index

consistently outperformed the Morningstar Global Energy
Index from August 2020 to October 2021 but began a streak
of underperformance again in December 2021. Some hold
that another green bubble formed and then popped from
2020 to 2023, largely in Europe, which may help explain this
underperformance. Due to the European Energy Crisis, fossil
fuel prices spiked, driving up conventional energy returns.
Clean energy stocks were hit harder by breakdowns in the
supply chain, inflation, high interest rates, and price ceilings at
renewables auctions.6 It remains to be seen how these factors
will express themselves in private energy transition fund

6: “2023 – The Year the European Renewables Bubble Burst,” Forbes, Wood Mackenzie, January 25, 2024.

8 Q3 2024 GLOBAL REAL ASSETS REPORT SPOTLIGHT

 Infrastructure
Infrastructure fundraising activity
168
154 151
146 146 146
139
133
127

72

46

$71.6 $98.8 $86.5 $89.7 $101.1 $111.5 $130.9 $141.5 $142.6 $118.8 $64.5

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Capital raised ($B) Fund count

Source: PitchBook • Geography: Global • As of September 30, 2024

Against the macroeconomic backdrop of still-elevated Infrastructure fund count by size bucket
interest rates, a challenging exit environment resulting in
140 $5B+
limited distributions back to allocators, and geopolitical
uncertainty, infrastructure fundraising has occurred at a $1B-$5B
120
subdued pace over the first few quarters of 2024. While it $500M-$1B
has not experienced nearly as stark of drop-offs in activity
100 $250M-$500M
as other asset classes such as VC or real estate over the
past several years, with 46 vehicles receiving $64.5 billion in $100M-$250M
80
cumulative commitments through Q3, the asset class is still <$100M
on track to raise less capital in 2024 than it has in almost a
60
decade. In part, this is because only one fund over $5 billion in
size has held a final close thus far, compared with an average
40
of six vehicles in that size bucket doing so annually from 2019
to 2023. Over that period, funds in the $5 billion-plus category
20
accounted for between 34% to 67.1% of capital raised each
year, reinforcing that megafunds play a significant role in
0
infrastructure achieving robust fundraising numbers.
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

We are aware of at least seven infrastructure vehicles that

Source: PitchBook • Geography: Global • As of September 30, 2024
began fundraising in 2023 and are targeting fund sizes of
over $7 billion, with two of the seven seeking $20 billion
or more. A few final closes among these funds in Q4 could
drastically increase 2024’s fundraising figures and help build
back dry powder, which shrunk to $282.3 billion as of Q1,
down from $341.5 billion in 2023 and $388.8 billion in 2022.
It would not be the first time that Q4 fundraising brought

9 Q3 2024 GLOBAL REAL ASSETS REPORT INFRASTRUCTURE

 Infrastructure capital raised ($B) by size bucket Infrastructure dry powder ($B)
$160 $5B+ $400 Total
$1B-$5B 2024
$140 $350
$500M-$1B 2023
$120 $300 2022
$250M-$500M

$100M-$250M 2021
$100 $250
2020
<$100M
$80 $200 2019

$60 2018
$150 Dry powder by vintage 2017
$40
$100

$20
$50

$0
$0
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Source: PitchBook • Geography: Global • As of September 30, 2024 Source: PitchBook • Geography: Global • As of March 31, 2024

a year’s numbers from a potential decade low to above the Months to close for infrastructure funds
decade average. For instance, infrastructure funds raised just
35
$24.4 billion through Q3 2023 but closed on $94.5 billion in
Q4 of that year. Historically, we have seen a spike in closes
30
in the fourth quarter as GPs try to wrap up their fundraising
by the end of the year; although, we also see higher values
25
in Q1 as fund managers try to access the following year’s LP
allocation budget. Infrastructure funds are now taking longer 20
to close, with median time to close in 2024 at 25.6 months,
up substantially from 21.5 in 2023 and 19.6 in 2022. Given this 15
and the difficult fundraising environment, we may see more
Q1 closes than we have in the past. 10

Strong fundraising activity among vehicles located in Asia 5

has persisted into Q2 and Q3 2024, with $14 billion raised
in the first three quarters of the year, which is more than 0
the region raised in six of the past seven full years. This is 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
partially attributable to the size of the vehicles raised; four
Slowest quartile Average Median Fastest quartile
of the 15 largest funds to close in Q2 and Q3 are located in
Source: PitchBook • Geography: Global • As of September 30, 2024
Asia, with three based in China and one in South Korea. As
discussed in our Q1 2024 Global Real Assets Report, China has
traditionally dominated Asian infrastructure fundraising due
to extensive government spending on infrastructure, which
has created opportunities for investors in the space. This is
true across sectors, from both renewable and conventional
energy infrastructure to transports & logistics infrastructure
and digital infrastructure. Funds located in North America and
Europe, in contrast, are on track to receive much lower levels
of commitments than they have in recent years, with the

10 Q3 2024 GLOBAL REAL ASSETS REPORT INFRASTRUCTURE

 Infrastructure capital raised ($B) by region
$160 North America
Europe
$140
Asia
$120 Oceania
Middle East
$100
Africa
$80 Rest of world

$60

$40

$20

$0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Source: PitchBook • Geography: Global • As of September 30, 2024

former at $33.4 billion and the latter at $15.6 billion received. and their infrastructure will be necessary to support scaling
A few major closes could change this, though, and each of demand in coming years. While two quarters of data does not
the seven infrastructure vehicles that opened in 2023 and dictate the trajectory of the sector, it will be worthwhile to
are targeting fund sizes of over $7 billion are based in either continue tracking developments in this area.
North America or Europe, so it is possible that we will see this
trend soften. The second-most-widely cited area of investment was
transports & logistics infrastructure, listed by six of the
In keeping with recent patterns, the most popular investment top 15 vehicles. As we have noted in previous reports, the
sectors among the top 15 largest infrastructure funds to close “deglobalization” investment theme has become increasingly
in Q2 and Q3 2024 were energy transition infrastructure, prolific in the infrastructure space over the past few years,
transports & logistics infrastructure, and digital infrastructure. with investors expecting a reconfiguration of trade routes
Energy transition infrastructure was listed by the most to create attractive opportunities. Geopolitical tensions are
vehicles—12 of the 15—as an area of investment and had anticipated to catalyze an even faster evolution of this trend,
the greatest number of funds—five—dedicated to investing with supply chains shifting not only to preclude disruptions
exclusively in the space. We covered energy transition but also due to trade being used as a political bargaining chip.
infrastructure in depth in our recent analyst note Infrastructure Digital infrastructure was mentioned as an investment sector
Funds Fuel the Energy Transition, which is the subject of this by four of the 15 funds, with one specialist vehicle that will
report’s “Spotlight” section. However, one new dynamic that invest in telecom and datacenters alone. More asset managers
has emerged in the Q2 and Q3 2024 top funds list is that are looking to increase their exposure to and expertise in digital
there is a considerable portion of vehicles targeting both infrastructure, with Blue Owl’s acquisition of IPI Partners being
renewable and conventional energy infrastructure, with five a recent example of this. As discussed in our Infrastructure
of the 15 doing so. As noted in the “Spotlight” section, over Investors Capitalize on the Digital Revolution note, robust
the past 15 years, the proportion of generalist funds that have returns from telecom and datacenter assets—supported by
invested in oil & gas infrastructure alongside energy transition government spending and growing demand for capacity—have
infrastructure has broadly declined due to allocator pressures drawn more capital to funds investing in digital infrastructure
to decarbonize. One reason we could see a reversal of this over the past decade. With long-term and newer tailwinds to
trend is growing concern about energy security sparked by the space, such as the proliferation of AI, projected to continue
the Russia-Ukraine war and resulting European Energy Crisis, into the next decade, the increased level of investment in the
which has indicated to some investors that all kinds of energy sector is likely to endure.

11 Q3 2024 GLOBAL REAL ASSETS REPORT INFRASTRUCTURE

 Top infrastructure funds to close in Q2 2024 and Q3 2024
Capital
Fund Investor Close date Fund type Fund location
raised ($M)

Energy Capital Partners V Energy Capital Partners $4,400.0 May 28 Core plus Summit, US

EQT Active Core Infrastructure Fund EQT $3,219.0 September 24 Core Stockholm, Sweden

Stonepeak Opportunities Fund Stonepeak Partners $3,150.0 August 6 Value-added New York, US

Quinbrook Infrastructure
Net Zero Power Fund $3,000.0 August 1 Value-added Houston, US
Partners

LS Power Equity Partners V LS Power Group $2,700.0 August 27 Infrastructure New York, US

SDC Digital Infrastructure Opportunity Fund IV SDC Capital Partners $2,100.0 April 5 Value-added New York, US

Beijing Guoneng Industrial Rongqiang Chain RMB Fund CHN Energy Investment $2,077.9 August 13 Infrastructure Beijing, China

EnCap Energy Transition Fund II EnCap Investments $1,500.0 May 8 Core Houston, US

Ping An Insurance (Group)

Shenzhen Municipal RMB Fund $1,400.4 September 5 Infrastructure Shenzhen, China
Company of China

Five Point Energy Fund IV Five Point Energy $1,400.0 September 9 Infrastructure Houston, US

KDB Smart Ocean Shipping Infrastructure Fund Korea Development Bank $1,400.0 April 2 Opportunistic Seoul, South Korea

Yunneng Fund
Yunnan New Energy RMB Fund $1,386.5 August 14 Infrastructure Shenzhen, China
Management

H.I.G. Infrastructure Partners Fund H.I.G. Capital $1,300.0 June 24 Infrastructure Miami, US

Northleaf Infrastructure Capital Partners IV Northleaf Capital Partners $1,119.8 August 26 Core Toronto, Canada

EIG Fund XVIII EIG $1,073.0 April 12 Infrastructure Washington, US

Source: PitchBook • Geography: Global • As of September 30, 2024

The geopolitical landscape will have implications for projects may be exacerbated under the new administration,
more than just opportunities in the transports & logistics and aggressive tariffs against China will likely increase
space, influencing the amount of capital flowing to various development costs—all of which will present challenges for
infrastructure sectors and geographies over the next few energy transition infrastructure investors. In contrast, support
years. The Russia-Ukraine and Israel-Hamas wars have for digital and conventional infrastructure such as roads,
contributed meaningfully to evaluations of geopolitical bridges, and ports has historically been more bipartisan. In
risk, but the 2024 election super-cycle has also profoundly fact, the deregulated approach to AI championed by Trump
affected the political climate. One of the most marked may benefit the digital infrastructure space by helping
developments on the global stage has been the recent to preserve the tailwind that unbounded AI innovation is
election of Trump as president of the US. For many, this has to datacenters.
raised questions about whether government support for the
energy transition will be rolled back, as Trump has indicated Under the current less-predictable market conditions, there
that he plans to eliminate much of what was implemented by is also less clarity around which strategies are poised to
President Joe Biden. Uncertainty abounds, but a full repeal perform the best. As a result, the share of capital committed
of the Inflation Reduction Act is thought to be improbable, to generalist infrastructure funds that utilize multiple
given there is bipartisan support for some components of approaches or do not publicly disclose their strategy has
it, including clean energy projects that have created jobs remained high, at 31.7% of commitments made through Q3
and decreased the cost of electricity in conservative states. 2024, and no one strategy shows total dominance. Core
Even so, protracted approvals processes for renewables and value-add funds—which have very different risk-return

12 Q3 2024 GLOBAL REAL ASSETS REPORT INFRASTRUCTURE

 Infrastructure capital raised ($B) by type
$160 Debt

Greenfield
$140
Opportunistic
$120 Value-added

$100 Core plus

Core
$80
Infrastructure
$60

$40

$20

$0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source: PitchBook • Geography: Global • As of September 30, 2024

profiles and use differing amounts of leverage—received PitchBook Infrastructure Index quarterly returns
similar shares of capital, at 26.3% and 22.1%, respectively.
8%
With that said, there does still appear to be a tendency
toward lower-risk and income-focused strategies overall,
with core, core plus, and debt funds receiving a combined 6%

43.7% of capital, compared with value-add, opportunistic,

and greenfield receiving 24.6%. Allocators and fund managers 4%
gravitating to lower-risk infrastructure assets or funds would
not be unusual under economic and political conditions that 2%
some deem precarious, as they can be considered safe-haven
investments. While this trend may seem to conflict with the
0%
sentiment that value creation has played a more important
part in infrastructure fund strategies due to higher interest
rates and competition for assets,7 it is important to keep in -2%
mind that even in core and core plus strategies, there is often
room for accretive activities.8 -4%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2019 2020 2021 2022 2023 2024

Source: PitchBook • Geography: Global • As of June 30, 2024
Note: Q2 2024 data is preliminary.

7: “Ten Private-Markets Considerations Shaping 2024 So Far,” McKinsey & Company, Andrew Mullin, et al., September 30, 2024.
8: “Looking To 2024: How a Sweet Spot for Infrastructure Could Benefit Investors,” KKR Infrastructure, Raj Agrawal, n.d., accessed November 25, 2024.

13 Q3 2024 GLOBAL REAL ASSETS REPORT INFRASTRUCTURE

 Infrastructure funds rolling one-year horizon IRRs

50%

40%

30%

20%

10%

0%

-10%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2019 2020 2021 2022 2023 2024
Real assets Infrastructure Private capital
Source: PitchBook • Geography: Global • As of March 31, 2024

Supporting infrastructure fundraising is the asset class’s focused on digital and energy transition infrastructure,
consistent and impressive performance over the past several we highlighted the outperformance potential that these
years. Infrastructure notched a 10.5% return in the year sectors have offered to investors and the tailwinds that are
through Q1 2024, outperforming all other private capital responsible for it, including government support and growing
strategies and the overall private capital universe—and demand. As discussed in our previous Global Real Assets
not for the first time, as discussed in our Q1 2024 Global Report, transportation infrastructure has also had a positive
Fund Performance Report. Some would attribute these influence on returns for some funds, with assets in passenger
performance outcomes to the countercyclical and inflation- and freight transportation spaces experiencing different but
hedging characteristics that the asset class has come to be also strong tailwinds. Ultimately, it is because the asset class
known for, such as the provision of services for which demand benefits both from its traditional characteristics and these
is relatively inelastic and the possession of long-term and sector-specific return drivers that it has been able to maintain
often inflation-linked contracts that result in predictable its robust performance. It is for these reasons that despite
revenue streams. While those characteristics do contribute preliminary quarterly Q2 2024 returns dipping to 0.2%,
materially to the asset class’s return profile, sector-specific investors remain bullish on infrastructure.
forces also factor in considerably. In our recent reports

14 Q3 2024 GLOBAL REAL ASSETS REPORT INFRASTRUCTURE

 Natural resources
Natural resources fundraising activity
107

89
82
72 71 68
63 66
57

37

15

$35.4 $58.1 $19.8 $35.3 $26.2 $21.1 $14.2 $10.3 $5.3 $13.8 $6.2

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Capital raised ($B) Fund count
Source: PitchBook • Geography: Global • As of September 30, 2024

Within the natural resources sector, we make a distinction Oil & gas fundraising activity
between oil & gas and other subtypes, given that separate
54
headwinds and tailwinds affect each category. The return and
risk characteristics between the two categories are also very 50
different. The “other natural resources” category includes
agriculture, metals & mining, and timber, as well as a catchall 39
for funds that do not sit neatly in one bucket. 32 33
26
Oil & gas
24
19 10
Private oil & gas fundraising peaked in 2015 when 54 funds $3.9
raised $47.5 billion. Since then, fundraising has been in a 10 6
steady decline over the years due to poor risk-adjusted $2.9
$2.1

historical returns and shifts away from the sector by

$24.3

$10.4
$47.5

$18.2

$12.4
$19.6

$6.9

$1.0

institutional LPs. West Texas Intermediate (WTI) oil prices

have fallen starkly from their Q1 2022 high of $126.3 per barrel
2014

2015

2016

2017

2018

2019

2021
2020

2022

2023

2024

when there were heightened concerns around oil scarcity

following the start of the Russia-Ukraine war.9 Over the
Capital raised ($B) Fund count
same period, the one-year return for oil & gas funds reached
Source: PitchBook • Geography: Global • As of September 30, 2024
42.8%. Throughout 2024, WTI crude oil prices have hovered
between $66.7 and $87.7 per barrel,10 causing the one-year
performance to drop to 3.8% through Q1 2024. The one-year
return settled just below the strategy’s 10-year IRR of 3.9%,

9: “Crude Oil Prices: West Texas Intermediate (WTI) - Cushing, Oklahoma,” Federal Reserve Bank of St. Louis, US Energy Information Administration, November 20, 2024.
10: Ibid.

15 Q3 2024 GLOBAL REAL ASSETS REPORT NATURAL RESOURCES

 Oil & gas rolling one-year IRR and change in WTI oil price
50% 150%

40%
100%
30%

20% 50%

10%
0%
0%

-10% -50%

-20%
-100%
-30%

-40% -150%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2019 2020 2021 2022 2023 2024

Oil & gas one-year IRR (left axis) Change in WTI oil price (right axis)
Source: PitchBook, FRED • Geography: Global • Performance data as of March 31, 2024
Note: WTI crude oil price is as of September 30, 2024.

highlighting that private oil & gas fund returns have not been Share of oil & gas capital raised by region
robust over the past decade. Dry powder figures as of Q1 2024
100% North America
are at $16.6 billion—their lowest levels on record going back
to 2006, given persistent hesitance around private investment 90% Europe
into the sector. It is against this backdrop that six oil & gas 80% Asia
funds closed on $2.9 billion through Q3 2024. The asset class
70% Oceania
is tracking to hit last year’s total of $3.9 billion, which was an
improvement over 2021 and 2022’s fundraising totals, but still Middle East
60%
far from historical norms. Africa
50%
Rest of world
Oil prices through 2024 have been heavily impacted by 40%
market oversupply. In late 2023, eight OPEC+ members
30%
voluntarily agreed to cut 2.2 million barrels per day (bpd) of
oil production to stabilize prices.11 Initially, OPEC+ intended 20%
to gradually loosen these production cuts in October and 10%
release 180,000 bpd back into the oil ecosystem. However,
0%
as oil pricing remained low, plans for the production increase
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

were delayed, and in November, OPEC+ decided to extend the

voluntary cuts through the end of December due to concerns
Source: PitchBook • Geography: Global • As of September 30, 2024
that additional supply could further deteriorate pricing.12
Barring any significant disruptions to supply availability—
which, while unlikely, is a possibility should Israel decide to 2025 as the International Energy Agency estimates that, even
target Iranian oil facilities with air strikes—it is increasingly with OPEC+ cuts in place, there will be a global surplus of 1
looking as though production cuts will be further delayed into million bpd in 2025.13

11: “OPEC+ Extends Cuts and Plans for Production Increases,” TD Economics, Marc Ercolao, June 3, 2024.
12: “OPEC+ Delays Supply Restart Again as Crude Prices Struggle,” Bloomberg, Grant Smith and Salma El Wardany, November 3, 2024.
13: “Oil Market Report - November 2024,” International Energy Agency, November 2024.

16 Q3 2024 GLOBAL REAL ASSETS REPORT NATURAL RESOURCES

 Oil & gas M&A activity
481

376 386
340 353 368 351
318 332
287

197

$106.9 $138.3 $151.7 $99.5 $140.3 $99.0 $58.9 $90.2 $123.7 $201.6 $119.1

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Deal value ($B) Deal count

Source: PitchBook • Geography: Global • As of September 30, 2024
Note: Buyouts are excluded.

One main driver contributing to depressed oil prices is the and the rising adoption of EVs. While China has committed
increase in production from non-OPEC countries. According to significant resources to stimulate its economy, including a
the US Energy Information Administration, estimates indicate $1.4 trillion package to help local governments refinance their
that the US, the world’s largest oil producer, is expected to debts, these measures have not directly addressed weak
produce 13.4 million bpd by the end of 2024—a roughly 4% consumer demand.18 Should the Trump administration impose
increase from the 12.9 million bpd that it produced last year. 14
a 60% tariff on Chinese goods, this would add significant
In addition, Canada’s production capacity has expanded by strain to the Chinese economy and its potential for growth,
590,000 bpd after the completion of the Trans Mountain leading to even greater reductions in oil demand.
Pipeline in May, boosting the country’s total output to 5.3
million bpd through 2024.15 Combined with strong production Falling oil prices have spurred a couple of large-scale M&A
figures from countries like Brazil and Guyana, the increased oil transactions in the public realm this year, with the rationale
supply has largely offset the production cuts by OPEC+.16 being that added scale and operational efficiencies will
provide merged companies with enough buoyancy to weather
Additionally, sluggish demand from China has further price drops. ConocoPhillips acquired Marathon Oil for $22.5
compounded the challenges for the oil market. China’s oil billion in May, while Diamondback Energy acquired Endeavor
demand has slowed significantly, with six consecutive months Energy Resources in September for $26 billion. In addition to
of reduced consumption. Through 2024, China’s oil demand is these megabillion-dollar deals, four M&A transactions over
expected to have grown by just 140,000 bpd, a much smaller $5 billion were announced through the year. While 2024’s
increase than the 1.4 million bpd increase seen in 2023 upon current M&A deal value of $119.1 billion is well below 2023’s
China lifting COVID-19 restrictions.17 This year’s slowdown $201.6 billion, last year’s volume was also an outlier due to the
can be attributed to multiple factors, including the country’s massive mergers of Chevron and Hess as well as ExxonMobil
ongoing property crisis, which has stunted economic growth, and Pioneer Resources, which combined totaled over $110

14: “U.S. Crude Oil Stockpiles Rise More Than Expected,” The Wall Street Journal, Anthony Harrup, November 14, 2024.
15: “Canada Pipeline Squeeze Set To Return Despite Trans Mountain Start-Up,” Reuters, Nia Williams, May 9, 2024.
16: “Four Countries Could Account for Most Near-Term Petroleum Liquids Supply Growth,” US Energy Information Administration, March 14, 2024.
17: “Oil Market Report - November 2024,” International Energy Agency, November 2024.
18: “China’s Economic Rescue Plan Leaves Commodities Stuck on Pause,” Bloomberg, November 10, 2024.

17 Q3 2024 GLOBAL REAL ASSETS REPORT NATURAL RESOURCES

 Other natural resources fundraising activity
57

47
43 44
42 42
40
38
35

27

$11.1 $10.6 $9.3 $15.7 $8.0 $8.8 $7.2 $9.3 $3.3 $9.9 $3.3

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Capital raised ($B) Fund count
Source: PitchBook • Geography: Global • As of September 30, 2024

billion. Public M&A activity through Q3 2024 is generally by 27 funds in 2023. This low fundraising haul is partially
in line with the pre-2023 average of $120.4 billion. PE deal attributable to the cyclicality of larger funds and their
activity, in contrast, fell to $14.2 billion, well below the 2012 fundraising cycles—five funds between $500 million and $5
through 2023 average of $35.1 billion. billion raised $7.1 billion last year, while just two have raised
$2.6 billion so far this year. In addition, pricing headwinds
Of the six oil & gas funds to close through Q3, three funds for several critical minerals due to global oversupply and
raised over $500 million. The largest fund, Carnelian Energy geopolitical uncertainty have contributed to limited private
Capital V, raised $975 million, followed closely by EnCap investment into the space. Dry powder levels for other
Flatrock Midstream Fund V on $931 million, though this was natural resources fell to just $14.7 billion as of Q1 2024, its
well below its $3 billion target size. Both will invest in oil lowest level since 2010. With that said, an interesting trend
opportunities across North America. Rockland Power Partners among the funds to close so far this year is that all eight
IV closed on $700 million to target investments into natural have some type of sustainability focus. Themes include
gas-fired power plants across the US to supplement the reforestation, carbon credit strategies, mining for green
country’s electricity production, representing a 1.5x step- energy projects, and regenerative farming, as funds explore
up from its 2018 vintage fund. SNB Capital Oil & Gas Fund I, how sustainability-focused strategies can be a differentiating
based in Saudi Arabia, raised $230 million to invest into a joint driver of returns. While the overall other natural resources
venture between PE firm EIG and Spanish energy company category delivered an 8.3% one-year performance through
Repsol.19 The smallest fund to close was Fortress Energy Q1 2024, the underlying strategies had wide dispersion
Partners III with $11.3 million that will be dedicated to royalty in performance.
interest and leasehold projects in the Permian basin.
Three of the funds raised have broad investment mandates
Other natural resources and thus fall within the catchall real assets & natural
resources fund type. NGP Sustainable Real Assets, which
Other natural resources vehicles are having a lackluster raised $500 million, will invest in clean power and fuels,
year for fundraising. Through Q3, nine funds raised $3.3 transportation, and critical minerals. Climate Asset
billion, a 66.7% YoY drop in value from the $9.9 billion raised Management, a joint venture established between HSBC

19: “Saudi’s SNB Capital launches Fund With Focus On Oil and Gas,” Reuters, February 28, 2024.

18 Q3 2024 GLOBAL REAL ASSETS REPORT NATURAL RESOURCES

 Other natural resources dry powder ($B)
$30 Total

2024
$25 2023

2022
$20 2021

2020
$15
2019

2018
$10
2017
Dry powder by vintage
$5

$0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Source: PitchBook • Geography: Global • As of March 31, 2024

Asset Management and climate advisor Pollination, closed Impact Partners 1, with $49.5 million raised, will back growing
on two funds this quarter. The larger of the two is its $200 companies that focus on regenerative agriculture in US rural
million Nature Based Carbon Strategy fund, which will seek communities. The $45.9 million Conservation Resource
to make global investments to conserve and restore natural Capital VI fund seeks to acquire US farmland that has been
ecosystems in emerging economies that capture and store managed using either organic or regenerative agricultural
carbon dioxide, in turn offering its investors nature-based methods. These funds are likely seeking to take advantage
carbon credits. Its Natural Capital Strategy fund, totaling $100 of stable demand for agricultural products through market
million in commitments, will focus on regenerative farming downturns, positive correlation between inflation and rising
and sustainable forestry in developed markets. farmland values, as well as the theoretical noncorrelation of
farmland and agriculture to public equities. 22 For instance,
Along similar lines, timber fund Astarte Capital Partners’ while the S&P 500 experienced considerable drops during
SA Impact Forestry Fund closed on $325.3 million to invest the COVID-19 pandemic in 2020, the price of US farmland
in Paraguay’s forestry sector. It aims to generate returns remained stable, as global demand for food production
from repurposing nonarable farmland into sustainable grows annually and remains a necessary global commodity. 23
commercial forestry operations. Timber funds saw a one- Agriculture funds saw the best performance among the
year performance of 13.6%, outperforming the broader natural resources subtypes, with a 20.3% one-year return
other natural resources category by a 5.3% margin. Though through Q1 2024 driven by the factors mentioned above.
lumber prices have fallen below the spikes seen in 2021 and
2022, they have stabilized higher than 2017 levels, with the The largest fund to close so far this year was China-based
expectation that further rate cuts around the world will lead Guohua Energy Investment Fund on $2.1 billion, representing
to increased construction activity through 2025. 20, 21 62.8% of total capital raised through Q3 2024. The fund
will invest in the critical minerals involved in solar and wind
Q3 also saw the close of three agricultural funds, two of energy, as well as green energy storage. It is pursuing this
which will have a focus on US investments. RuralWorks strategy at a time that several critical minerals instrumental

20: “Global Construction Can Look Forward To Stronger 2025 (With One Possible Exception),” KHL Group, Neil Gerrard, October 7, 2024.
21: “Producer Price Index by Commodity: Lumber and Wood Products: Lumber,” Federal Reserve Bank of St. Louis, US Bureau of Labor Statistics, November 14, 2024.
22: “The Relationship Between Inflation and Farmland Returns,” TIAA Center for Farmland Research, Bruce Sherrick, October 2020.
23: “Seeding New Capital: Understanding Private Financing for a Regenerative Agriculture Future,” The Conservation Finance Network, Will Slotznick, July 30, 2024.

19 Q3 2024 GLOBAL REAL ASSETS REPORT NATURAL RESOURCES

 Share of other natural resources capital raised by type
100% Real assets &
natural resources
90%
Timber
80%
Metals & mining
70% Agriculture
60%

50%

40%

30%

20%

10%

0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Source: PitchBook • Geography: Global • As of September 30, 2024

to clean energy development are undergoing plummeting

price drops amid rising geopolitical tensions, including
lithium, cobalt, and iron ore. Diving deeper into lithium as
an example, lithium carbonate pricing has nosedived from
its five-year high of approximately $80,000 per tonne in
November 2022 to roughly $10,000 per tonne in November
2024. 24 This extreme price crash is due to a combination of
slowing demand for EVs and lithium production oversupply
from China, which accounts for over 60% of the world’s
lithium output. 25 Lithium supply is expected to be in surplus
through 2026, 26 which may suppress pricing at its current
level in the near term.

Many other critical minerals are facing similar dynamics, and

metals & mining fund returns are suffering as a result. Metals
& mining fund prices saw a massive run up between 2021 and
2022 following a rebound in global manufacturing coming out
of the pandemic; additionally, government initiatives such as
the Inflation Reduction Act and REPowerEU plan encouraged
massive public and private investment into the energy
transition. As such, metals & mining funds saw its one-year
performance increase from 1.8% in Q2 2021 to a stunning
29.8% by Q2 2022. However, overinvestment led to a glut in
supply across various critical minerals, leading to downward
pricing pressure and weaker fund returns in 2023 and 2024.

24: “Lithium,” Trading Economics, n.d., accessed November 25, 2024.

25: “China Is Oversupplying Lithium To Eliminate Rivals, US Official Says,” Reuters, Sergio Goncalves, October 8, 2024.
26: “A Tale of a Looming Surplus in the Lithium Industry: Sticky Supply To Stay?” Wood Mackenzie, Allan Pedersen and Mamta Jaswal, August 1, 2024.

20 Q3 2024 GLOBAL REAL ASSETS REPORT NATURAL RESOURCES

Additional research
Private capital

Q3 2024 Analyst Note: Q4 2024 Analyst Note:

Infrastructure Investors Infrastructure Funds Fuel the
Capitalize on the Energy Transition
Digital Revolution
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Q3 2024 Analyst Note: The H1 2024 Global Real

Evergreen Evolution Estate Report

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Q1 2024 Global Fund Q3

2024
Q3 2024 Private Market
Performance Report (with GLOBAL
Private Market
Fundraising Report
preliminary Q2 2024 data) Fundraising Report

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