A new age of infrastructure

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Investors are embracing infrastructure assets like never before. In 2018, they look likely to set a record for unlisted infrastructure fundraising at the time of writing.1 Why? Infrastructure assets can offer relatively high yields that investors with regular income needs, such as insurance companies and pension funds, find difficult to come by in today’s persistently low-interest rate environment. Investors are finding a plethora of opportunities, as the private sector steps in to fill a funding gap left by governments. Europe, where we invest, needs €2 trillion of investment in infrastructure by 2020 just to stay competitive, according to estimates by the European Commission. In straitened economic times, this is a bill that most governments simply cannot afford.