Investing late in any investment cycle is full of downside risk. And just about every major asset class seems fully — if not over — valued right now. Even infrastructure, which is still considered to be less correlated to stocks, bonds and real estate, has experienced steadily rising valuations driven by loads of dry powder and sustained fundraising activity.

“The risk of overpaying for assets has never been greater,” says Andrew Claerhout, a senior adviser at Boston Consulting Group. “But investors can’t just sit on their hands. They must balance the need to invest capital and be ready for when the market corrects. They need to put money to work but with eyes wide open.”

Investors are clearly concerned about the amount of capital entering the infrastructure market, and there is fear the market is nearing the top of the cycle. In Probitas Partners’ most recent 2019 Infrastructure Institutional Investor Trends survey, participants were asked, “As an in