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US is world’s most attractive destination for private infrastructure investment, says Q4 pulse survey

Modernisation of state transport, energy and water networks through public-private partnerships is crucial to maintain investment momentum

Our latest pulse survey with Alvarez & Marsal of the sentiment of the world’s leading institutional investors in transport, energy, water and communications networks confirms the United States as the most attractive global destination for private capital. 

On a scale of +5.0 (extremely attractive) to –5.0 (extremely unattractive), the US scores +2.3. That puts it well ahead of Europe’s most appealing destinations of the German-speaking DACH group of countries (+1.95) and France (+1.57).  

Relative to the US and Canada (+1.70), countries across South America all received negative ratings (unattractive) from investors, as did the United Kingdom. 

The Infrastructure Investment & Jobs Act and Inflation Reduction Act have together transformed the attractiveness of the US market, which in recent years was largely seen as an ‘also ran’ by investors. 

GIIA chief executive Jon Phillips said: 

“The US has transformed its attractiveness to investors through the huge incentive packages launched by the Biden government. But the offer of federal funding needs to be matched by the willingness of state governments to consider private finance as a way of getting transport, energy, water and communications projects built more quickly and cost-effectively. 

“Faster permitting and better communication with communities about the benefits of new projects are essential to build the public confidence and support that is needed to make them happen. 

“The monumental grants, tax breaks, and other incentives available through this legislation will address some of the funding shortfalls, but they alone cannot fully bridge the gap between what Americans need and what federal and state governments can afford.” 

Across the Americas as a whole, investors in the six-monthly survey - conducted by our partner Alvarez & Marsal - highlighted three key sectors seen as attractive to invest in over the next 12 months.  

Regulated gas and utilities posted an all-time high ‘appeal rating’ of +1.50, while traditional sustainable generation (wind, solar, hydro), was rated +1.70. Data centres rose further compared to six months ago, at +1.80.  

But transport infrastructure across the Americas, such as airports and toll roads as well as regulated water, continue to post negative results.  

Within the US itself, the survey shows that investors continue to place sustainability concerns at the forefront of their strategies, with eight out of 10 planning to deploy $1-10 billion over the next five years that is aimed at achieving net zero targets. 

Six out of 10 investors describe their investment strategy as Core and Core Plus, targeting higher returns.  

With its number one rating among investors, the US appears to be well placed – provided it makes the right policy moves - to tap into more than $330 billion of private capital available globally, helping to modernise infrastructure for millions of Americans. 

Read and download the full report at the top of this page.