Despite institutions’ under-allocation to infrastructure, 2023 was the most challenging year for private infrastructure fundraising since 2015, according to the second annual Institutional Infrastructure Allocations Monitor released by Hodes Weill & Associates and Cornell University’s Program in Infrastructure Policy. In light of growing target allocations to infrastructure and positive investor sentiment, however, the pace of annual investments is expected to accelerate over the medium term. Globally, institutions are under-invested in infrastructure by an average of 123 basis points versus target allocations. During the past 12 months, the gap between actual and target allocations narrowed, as actual allocations grew faster than targets among repeat respondents.
During the past 12 months, institutions increased their target allocations to infrastructure by an average of 42 basis points to 5.5 percent. Amid a backdrop of a higher-for-longer, interest-rate e
