Infrastructure investing has in the past three years become a popular destination for institutional capital. That is partly due to the asset class’s ability to provide investors downside protection as market values continue to grow to seemingly exuberant levels. It is also in part thanks to the macro trends of the energy and digital transitions, which are in the early stages of attracting capital to create decarbonized and more high-tech societies. And now with inflation on the rise, infrastructure’s ability to hedge portfolios against this risk is giving investors another reason to allocate capital to the asset class.
The increased investment in infrastructure is coming from long-time infrastructure investors and their managers, and also from private equity, real estate and fixed-income investors that are looking for growth and cash-yield opportunities. This was one of the core discussions at the i3 Virtual Editorial Advisory Board meeting hosted by IREI in the
