In the first half of 2025, European equity funds have attracted over $100 billion in inflows — triple the amount recorded last year — while U.S. equity fund outflows have nearly doubled to $87 billion. This search for portfolio diversification has led to green shoots of investment into Europe, with recent data indicating that deal values in the European infrastructure sector have increased by more than 25% over the past six months.
Investor sentiment in Europe remains positive, boosted by rebalancing away from the U.S. and opportunities in energy and infrastructure. Germany’s €500 billion infrastructure fund and ‘debt brake’ reform could spark a virtuous growth cycle. And despite challenges like market complexity, regulatory barriers, and low productivity, current optimism signals strong potential for infrastructure growth and economic development.
Investors are seeing Europe as an emerging leader in sustainability-focused infrastructure like green and digital sectors, with government spending aimed at crowding in even greater levels of private capital. By 2034, the International Energy Agency forecasts significantly higher investment in European clean energy, low-emissions electricity, and grid infrastructure.
The report ‘Green shoots: Is Europe on the cusp of an infrastructure investment super-cycle?’, produced for GIIA by Alvarez & Marsal, offers more analysis and data-driven insights and can be read here (add link).
It sits alongside GIIA’s Infrastructure Pulse survey, also produced by Alvarez & Marsal, which offers a unique, six-monthly insight into market sentiment among the world’s leading infrastructure investors. Our recent Q2 2025 edition first signalled a resurgence in investor interest in Europe as an attractive investment destination.