Infrastructure investing has become an increasingly popular destination for institutional capital in the past three years. That is partly due to the ability of the asset class to provide investors downside protection as market values continue to grow to high levels. It is also in part thanks to the macro trends of the energy and digital transitions, which are in the early stages of attracting capital to create decarbonized and more high-tech societies. And now with inflation on the rise, infrastructure’s ability to hedge portfolios against some of this risk is giving investors another reason to allocate capital to the asset class.

The increased investment in infrastructure is coming from long-time infrastructure investors and their managers, and also from private equity, real estate and fixed-income investors that are looking for growth and cash-yield opportunities. This was one of the core discussions at the i3 Virtual Editorial Advisory Board meeting hosted by IR