The COVID-19 pandemic laid many things bare. Among them, the ability of certain infrastructure assets to withstand an exogenous shock; and unfortunately, the fragility of others. Lower-risk core infrastructure assets, such as regulated utilities, were cemented as steadfast investment opportunities, while value-add and opportunistic assets, such as toll roads and airports, were thrown on shaky ground.

Two years into the pandemic, as prices for core infrastructure investments continue to rise, investors are moving up the risk curve in search of new opportunities. Investors want assets and businesses that are poised to capitalize on the fundamental changes taking place in the economy. As a result, investing in assets in need of rehabilitation is becoming a more popular strategy.

This may be just what U.S. infrastructure needs. The American Society of Civil Engineers reported that the nation’s long-term infrastructure investment gap was at $2.59 trillion in 2021, a $260