Infrastructure Market Update
Category: Infrastructure market research Year: 2021
8 December 2021
Our Infrastructure Market Update provides insights on the market trends shaping the asset class.
The report includes an analysis of market sentiment, based on feedback from 50 LPs globally. As well as drawing out key themes, our conversations provided nuanced observations on topics ranging from portfolio composition and inflation concerns, to ESG strategies.
We also provide analysis on infrastructure capital flows, key investor macro themes, sector trends, platform extensions and secondary activity.
Unsurprisingly, in a post Covid investment environment, LPs recognise infrastructure’s relative resilience and downside protection
Key themes include:
Sustainability
A megatrend redrawing the infrastructure market, with regulation driving capital flows and a focus on measurability
Core infrastructure
A significant proportion of LPs are increasing their allocations to core, recognising the value of different risk/return profiles
Maturing fundraising market
Leading large-cap infrastructure GPs are becoming one-stop shops, with platform extensions becoming increasingly common
Inflation concerns
Real assets have historically been seen as a “safe haven” for investors in an inflationary environment; however, a more nuanced approach is required
Secondaries
Key trends include expanding levels of dry powder, major new entrants to the buy side and flexibility as a result of continuation funds and strip sales