In the West, the three “D” megatrends — digitalization, decarbonization and deglobalization — combined with a paucity of public funds have created a clear requirement for private capital to fill the infrastructure funding gap.

On the face of it, infrastructure presents as an attractive allocation as part of a diverse investment portfolio. With long-dated liabilities, institutional investors such as pension funds and insurance companies can benefit from the long-term maturity profile of infrastructure as an asset class, typically partnering with specialist investment managers to access opportunities in a meaningful way.

But if private capital is to play a greater role in the funding and management of key infrastructure, partly replacing the public sector (as it initially did through privatizations many years ago in some sectors), then it must do so in an environmentally, socially and financially sustainable manner. The reason for this is simple: Infrastructure i