Bruno Alves
Unlisted, closed-end infrastructure fundraising reached $162bn last year, with four mega-fund closes accounting for 38% of that amount.
Put some distance from the private markets pack, lay claim to emerging climate allocations and take a closer look at corporate infra.
High inflation has led to a sea change in the investment environment. The big question now is how long will it last? And will infra really thrive in a high inflationary period?
Some 39% of all open-end fundraising took place in the last 18 months, with a record 20 funds launched by this half-year alone. We map out the market using data from bfinance.
Our changing times call for new narratives around the asset class – and new audiences to spread them to.
We are getting the first inklings of how infra might perform in a more hostile environment, with different schools of thought forming on the asset class’s future.
A lingering drought, high-profile pollution incidents and sky-high energy bills are set to stress test a highly privatised market.
The asset class should be pleased with its record performance. The question is whether it can sustain such results in a more volatile macro environment.
Four of the 57 funds closed accounted for more than 54% of the total raised during the first half of the year.
Brookfield’s $15bn Global Transition Fund is one of the largest closes of the year, showcasing the depth of the decarbonisation opportunity.