In the immediate aftermath of market shocks, investors tend to be more prudent and hesitant to invest; however, these periods have historically provided record returns, according to the latest CEPRES report on infrastructure.
According to the report, this was the case in 2001 and 2009, when median returns in both Europe and North America rapidly increased to new peaks, after bottoming only a year before.
The report examines both the evolution of infrastructure strategies in private markets and historical returns across economic cycles and during periods of market disruption in North American and Europe.
CEPRES found that while infrastructure in Europe generally outperforms North America across most non-crisis years, the wide outperformance spread in the 1990s and early 2000s narrowed significantly between 2011 and 2019.
Returns in Europe during the 1990s and early 2000s also showed higher levels of volatility, compared to North America, demonstrating that