The article outlines the evolving strategies in the infrastructure investment sector, focusing on the shift towards core-plus allocations and changing investor preferences, driven by economic conditions such as interest rate cuts and inflation trends.
Our Q2 2024 Infrastructure Pulse survey reveal a significant reduction in core allocations among investors. In the Americas, core investments show an 8% year-on-year decrease, while European investors reduced their core allocations by 2%. This reflects a broader move away from traditional core strategies, as investors increasingly turn to core-plus allocations, which provide a more balanced mix of security and potential for higher returns.
We also highlight a rising preference for larger deals, with investors targeting opportunities over the US $500 million mark. This trend has led to strategic crowding at the top end of the market, with core and core-plus strategies taking a dominant position in portfolios. However, the mid-market remains underfunded, offering valuable opportunities for those prepared to explore it.
Read the article on Infrastructure Investors website here.