Massive infrastructure funding recently approved by the United States, China, and the EU, as well as ongoing improvements in low- and middle-income countries, are placing a renewed emphasis on infrastructure investments. Indeed, fund raising for public and private infrastructure investments—which include everything from power generation and renewable energy facilities to schools, hospitals, digital networks, water resources, and transportation projects¬—is hitting fresh highs: in 2022, global assets under management of private infrastructure investors are forecast to reach a record $950 billion.
While infrastructure investment opportunities are rife, returns from these projects vary. Some investment strategies are well suited for big gains in today’s environment; others are designed for smaller, albeit consistent, returns. Given the many possible investment strategies and the growing popularity of infrastructure investments as a whole, BCG and EDHECinfra, a provider of indexes and analytics for infrastructure investors, have partnered on “Infrastructure Strategy 2022,” the first in a series of annual reports intended to categorize the universe of investors by their priorities and focus as well as by their risk-adjusted performance.
The centerpiece of this report is the division of infrastructure investors into 16 peer groups that can be further broken down into four categories: global peer groups (which include asset owners, such as pension funds, endowments, and sovereign funds, and asset managers, such as private equity funds); home regions; asset manager styles; and asset owner styles.