As many institutional investors know, private infrastructure investments offer significant resilience against wider market volatility. The attractiveness of the infrastructure asset class to institutional investors has steadily increased, with annual allocations to the asset class growing by 3.8x between 2007 and 2023.1
While the private infrastructure market was not immune to the broader market challenges of 2008 and 2023, market data suggests that fundraising in 2024 is likely to be closer to its recent trend line, accounting for almost 10% of total private markets fundraising. Investor sentiment towards the infrastructure sector remains generally positive, largely due to tailwinds from the global megatrends of digitalization, decarbonization and delocalization and the increasing focus of many institutional investors on building a defensive or yielding portfolio, with high levels of inflation protection.
1 Cambridge Associates, as of 30 September 2024.