Whilst Real Estate markets globally face both headwinds and tailwinds, professional investor conversations about Infrastructure Investing are taking a different tone. With interest spanning equity and debt.
The infrastructure story is not new: Long life assets that provide a stable inflation linked stable income source. Nor is the need for Governments to turn to private capital to fulfil their investment funding gap. What is new is the urgency. And this urgency transcends multiple verticals:
From a real return perspective, institutional investors are waking up to the reality that inflation is here, and it is not looking transitory.
From an absolute return perspective, reduced growth forecasts are being priced into equity markets, resulting in re-valuation of major index constituents.
From a rates perspective, the first 5 months of 2022 have inflicted pain across the entire fixed income asset class.
But from a macro and micro perspective, the need to invest more in infrastructure has arguably never been greater since the Victorian era.
Professional Investors are once again re-opening their portfolios to larger infrastructure allocations to support the rapid transition to more digitisation, urbanisation, logistical fluidity, and of course decarbonisation.
As post-COVID and geo-political tensions unravel, a huge number of infrastructure investment opportunities are being presented.
