We are pleased to present our 2H 2024 House Views on the state of the infrastructure market.

Our House Views are developed using a combination of top-down analysis of macroeconomic conditions and a bottom-up approach that leverages the collective expertise of our 70+ infrastructure professionals, who have deployed an average of $13 billion+ annually over the past three years.

Our goal is to offer our clients sharp, actionable perspectives on the market.

Evolving considerations 

Transaction activity: We anticipate full year 2024 deal volume will remain below pre-2023 levels as investors adjust their expectations in response to changes in base rates.

  • Investors will likely remain focused on core+ and value-add opportunities.
  • Meanwhile, secondary transaction activity is expected to continue its growth trajectory.

Geopolitical uncertainty: Global political changes may impact infrastructure investment opportunities.

  • The upcoming election in the U.S. brings uncertainty to the Inflation Reduction Act and may pose risks to global trade from a protectionist standpoint.
  • In Britain, the victory by the Labour Party should bode well for investment in the energy transition.
  • Despite a shift in power in India, infrastructure spending should remain robust; policies to attract private capital remain en vogue.

Dynamic macroeconomics: The infrastructure asset class has largely lived up to its billing as an inflation hedge.

  • Despite elevated base rates, all-in borrowing costs remain competitive compared with historical rates.
  • We expect refinancing activity to thrive as GPs capitalize on strong lender demand at competitive margins to explore alternative sources of liquidity.

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