European private equity fund of funds manager Pantheon has raised $1 billion for a new infrastructure fund. Its global head of infrastructure tells FN why there is such strong demand for the asset class, and why a “frothy” deal environment is creating intense competition.

Pantheon announced on Tuesday the closing of its second infrastructure fund at over $1 billion, a big advance on the $350 million raised for its first Global Infrastructure Fund, which closed in December 2010.