Infrastructure investing is at a pivotal moment, driven by technology, climate urgency, and shifting capital flows. Governments alone can’t bridge the growing funding gap, opening enormous opportunities for private investors, in exciting new-economy sectors ranging from renewable energy to digital infrastructure.
Assets under management in dedicated infrastructure funds have tripled from roughly $500 billion in 2016 to more than $1.5 trillion today. Much of this is in the U.S. markets. Deal values, especially in the U.S. market, have also been rising steadily.
Digital infrastructure, including data centers and fiber networks; and sustainable sectors (Climate infrastructure investments) linked to the energy transition, such as renewables and battery storage have seen particularly keen interest from private investors.
Lower drawdowns compared to public market investments, natural hedge against inflation, providing higher yields during time of high inflation, and lower risk of defaults, are some of the salient features of this asset class.
Our team is ready to understand your unique needs and craft a strategy tailored to your legacy. Schedule a confidential consultation today.