Infrastructure investment is undergoing a profound transformation. While traditional infrastructure assets such as roads, bridges and energy networks have long been the focus of institutional capital, a less obvious but rapidly emerging category is social infrastructure: schools, daycare centers and administrative buildings. These asset types present a compelling opportunity for investors seeking stable, inflation-hedged cash flows; low default risk; and alignment with stringent environmental, social and governance (ESG) criteria.

Germany is currently particularly attractive for investment in social infrastructure for several reasons. Decades of underinvestment have left the country’s social infrastructure under severe strain, necessitating substantial capital inflows to modernize, expand and maintain essential public services. At the same time, Europe’s biggest economy is investing billions in its armed forces following the full-scale invasion of Ukraine in February 2022