A Bump in the Road: Private Equity Infrastructure Investment Set to Rebound Following Slowdown in 2023
Private Infrastructure Investment Has Been Put to the Test in a Challenging Environment; the Number of Infrastructure Deals Declined by 18% in 2023, and Global Infrastructure Fundraising Fell by 50% from a High of $176 Billion in 2022 to $89 BillionPrivate Infrastructure Investment Will Be Crucial, Given the High Demand for Renewed Infrastructure and the Need to Bridge a Massive Funding GapOperational Value Creation Will Become Even More Critical to Drive ReturnsBOSTON—Private investment in infrastructure has had sustained growth, with a compound annual growth rate (CAGR) of 18% from 2018 to 2023. Stable returns, low cyclicality, the ability to pass through cost inflation, a frequently regulated operational environment, and high barriers to entry have guaranteed unlisted infrastructure a spot in state-of-the-art strategic asset allocations.
