We are pleased to present our 1H 2024 House Views on the state of the infrastructure market.

Developed using a top-down assessment of macroeconomic conditions as well as a bottom-up approach that brings to bear the collective expertise of our ~70-person infrastructure team that deployed more than $25 billion over the last two years, our House Views are designed to provide our clients with incisive insights into the market.

Fundraising outlook

Despite the number of funds in market, 2023 was the weakest fundraising year since 2015. LPs deferred commitments in response to rising interest rates and increased weighting of unlisted assets.

  • Yes, but: Q4 2023 saw an uptick in fundraising, with ~USD67 billion of commitments, a 330% increase on the total raised in Q1 to Q3 2023.

  • With interest rates stabilizing in the US, Europe and the UK, LPs appear to be more confident about the macro outlook.

Our thought bubble: We expect to see this momentum continue into 2024.

Energy transition funds

Energy transition funds in the market grew by 60% relative to 2022. The supply of funds is being met with demand from increasing numbers of institutional investors specifically seeking exposure to the energy transition.

  • Go deeper: Many of these funds are likely to have large exposure to traditional renewable energy assets.

  • However, lesser established technologies such as biofuels, EV charging, and demand management are maturing and will become larger components of fund portfolios.

Secondary market growth

We expect the secondary market will become an increasingly important source of liquidity for LPs.

  • By the numbers: The number of deals our team has reviewed has grown nearly 6x since 2019, and we expect that momentum to continue into 2024.

The big picture: Infra’s secondary market may be less mature than that of other asset classes but it is quickly catching up as buyers and sellers establish market dynamics.

View the presentation