In response to the past couple of challenging years for private infrastructure investing, funds are broadening their traditional mandates, seeking out new sources of investment capital and continuing to up their operational game.
Already, the results appear positive, if cautiously so. While investment activity in 2024 was still down significantly compared to the peak year of 2022, infrastructure assets under management reached an all-time high in 2024, and fundraising is up modestly from the previous year.
To nurture and build on these signs of recovery, infrastructure funds are devising new strategies to attract capital, including from retail investors. They are also expanding their mandate to provide limited partners (LPs) with more differentiated risk/return-profiles and to offer investments in new. nontraditional next-generation infrastructure.
As detailed in this year’s report on the state of private infrastructure investing, funds continue to face an uncertain macroeconomic and interest rate environment. But shifts in strategy, together with the ongoing need for investment in energy, transport, digital infrastructure, and social infrastructure, suggest that the early signs of renewed growth will gain strength.
