Five years ago, sustainability was a novel feature in an investor’s portfolio. Now, growing concerns over the waning health of the climate and the way this will affect infrastructure are spurring more investors to push the envelope, thrusting sustainable infrastructure projects into the limelight.
Infrastructure deals picked up exponentially in 2019, with a slew of mega-funds leading the charge. Infrastructure fundraising in 2019 trumped the previous two years, according to IREI’s FundTracker database, which recorded 28 fund closings with $76 billion raised, year-to-date. There were also 48 funds launched in 2019, several of which are targeting multiple billions in capital.
The infrastructure investment space is heating up so much that firms such as Guggenheim Partners believe that sustainable investing has the potential to evolve into its own institutional asset class.