It was only three years ago that infrastructure funds were raising record amounts of capital, but not anymore. Instead, with their confidence shaken by a crisis and bad investment returns, many institutional investors are seeking greater control over their money, and alternatives to funds, such as direct investments and co-investments, are gaining favor.

“Investors are much more cautious,” says Mathias Burghardt, head of infrastructure for AXA Private Equity and its Ä1.1 billion ($1.4 billion) infrastructure fund. “In the past, big brand name funds, often at large investment banks, were attracting capital, but now investors are putting greater emphasis on team experience and track records. Instead of mega funds that invest in all regions and asset types, investors want strategies with more focused mandates.”

Infrastructure funds continue to raise capital — nearly $10 billion in the first half of 2010, which is about as much as was raised in all of 2009, but