Plan sponsor infrastructure investment increased during the past four years; however, the economic meltdown in 2008–2009 has given investors pause as they assess their portfolios and goals in a new financial market environment. Infrastructure investments have not been immune — fund raising has essentially ground to a halt in the first half of 2009. It seems plan sponsors have not abandoned the asset class but are instead reconsidering how best to manage their allocations given the markets’ new dynamics.
Institutional Real Estate, Inc. will host its fourth annual Institutional Investing in Infrastructure conference in November, and during the time since our inaugural event, a growing number of U.S. plan sponsors have investigated infrastructure investment and have decided it is right for their programs. However, most plans are ramping up their allocations slowly, preferring to build a knowledge base and gain experience in the asset before jumping in with both feet.