Private infrastructure stands out in an uncertain world.

The infrastructure landscape is changing—and expanding—rapidly. Driven by megatrends including Digitalization, Energy Transition, Supply Chain & Logistics and Urbanization, infrastructure investment continues to grow. Within this universe, private infrastructure stands out as a potentially vital component of investment portfolios, offering stability, inflation protection and diversification in an increasingly uncertain world. This paper examines the infrastructure growth trend and the various opportunities that may be available for institutions within the private investment sphere.

Executive Summary

  • Demand for infrastructure is surging, fueled by four megatrends: Digitalization, Energy Transition, Supply Chain & Logistics, and Urbanization.
  • The interplay between public and private investments has become a defining feature of the modern infrastructure landscape. Governments are increasingly leveraging public funding to attract private capital for critical infrastructure projects, creating a symbiotic relationship between the two sectors.
  • Infrastructure’s key attributes—essentiality, long asset life, high barriers to entry, inflation protection and stable cash flows—make it attractive for portfolio diversification and resilience, especially during economic and geopolitical volatility.
  • The definition of infrastructure investments is expanding, and higher risk-return strategies (value-add, opportunistic) are growing faster than traditional core/core-plus strategies.
  • We believe that co-investments and secondaries are underutilized yet powerful tools for portfolio construction, offering cost efficiency, flexibility and faster access to cash flows. The infrastructure secondary market is growing rapidly, with assets under management rising from $14 billion in 2020 to $31 billion in 2024.1
  • Private infrastructure stands out as a vital component of investment portfolios, offering stability, inflation protection and diversification in an increasingly uncertain world. By adopting a strategic approach and building diversified portfolios, we believe institutional investors can unlock the full potential of infrastructure, positioning themselves to achieve sustainable, long-term return potential while navigating the complexities of today’s global landscape.
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