The two hottest investment sectors right now are private credit and infrastructure. Of the two, I’d place my money on infrastructure to be the winner when it comes to delivering the long-term performance investors in these two hot sectors are seeking.

As institutions work to diversify their growing credit portfolios, they are facing two key questions — where to deploy capital in an expanding global market and where infrastructure credit should sit within their portfolio allocations.

The connection between infrastructure investment and real estate development cannot be overemphasized. The quality and location of infrastructure systems including utilities, transportation and telecommunications are major factors shaping real estate investment and development decisions in cities in the United States and worldwide.

Around the world, energy security is becoming a policy priority. In large part, this new focus stems from a fear of energy weaponization. In a world marked by increasingly volatile geopolitical tensions, interconnected energy systems can be used as pawns in conflicts.

Energy — cheap, reliable and abundant — has historically been one of the most critical enablers of American productivity. Why? Because energy is the key input for just about any economic activity, from manufacturing to transportation to simply keeping the lights on.

Between fleets of rental vehicles and ground support equipment, electricity demand at U.S. airports might quintuple in the next 20 years. Smaller regional and general aviation airports, which often have simple rural electric connections, are part of that overwhelming growth.

Second quarter 2025 infrastructure fundraising continued the robust activity of the first quarter. According to Institutional Real Estate, Inc.’s infrastructure database, nine funds reached a final closing with an aggregate total of $41.3 billion.