Demand for infrastructure investments, both listed and private, is at its highest level on record. Assets in dedicated listed infrastructure products have reached $111 billion globally, while managers of private infrastructure funds have raised capital. In fact, private managers are now sitting on nearly $350 billion in dry powder — cash on the sidelines, looking for suitable investments.
Although historic public infrastructure spending programs have raised the public profile of infrastructure as an asset class, we see several fundamental factors driving demand for listed infrastructure allocations, including:
Appetite for infrastructure’s attractive historical investment attributes, including the potential for strong total returns, reduced volatility and inflation protection
Access to critical forces driving economic change, including infrastructure modernization, digital transformation of economies, decarbonization