Latest Infrastructure Pulse Survey shows increasingly positive outlook in North America and Europe

GIIA is pleased to launch the results of the latest Infrastructure Pulse Survey for both the Americas and European markets, produced in partnership with Alvarez & Marsal.

Click here to read the Infrastructure Pulse Survey

The Q4 2021 Pulse Survey provides a track on market sentiment among infrastructure investors and insights on emerging trends and barriers to investment. Key findings include:

  • More funds are looking to deploy larger amounts of capital and realise one or more assets than at any time on the last 12 months, reinforcing the amount of deal activity in the market.
  • An increasingly positive outlook for European markets
  • Rising optimism around the US, Canada and other Americas
  • Negative sentiment around regulated utilities with unattractive regulatory regimes being seen as the highest barrier for investment in Europe
  • Europe seen as more negative than Americas across all of the ‘key barriers’ to investment
  • Communications Infrastructure remains the hottest sector

New Infrastructure Pulse Survey

GIIA, in partnership with Alvarez & Marsal, is pleased to launch the new GIIA Infrastructure Pulse Survey for both the European and Americas markets. This quarterly survey aims to provide a regular temperature check of sentiment in the sector and to monitor emerging trends.

Click here to view the results of the Europe Infrastructure Pulse Survey

 

Click here to view the results of the Americas Infrastructure Pulse Survey

Speaking on the release of the Survey, CEO Lawrence Slade said:

“We are excited to work with Alvarez & Marsal on the Infrastructure Pulse Survey which will monitor some of the key trends and issues affecting the infrastructure investment space in both Europe and the Americas. We are confident this will become a valuable market tool in understanding what is happening in the sector.”

Against a backdrop of Covid-19, a number of interesting common themes emerged from the first survey:

  • Most respondents raising capital expressed a neutral or marginally positive view of the
    fundraising environment.   For those investing new capital, almost three quarters of respondents indicated that infra debt markets remain favourable for funding of new infrastructure deals in both geographies.
  • In terms of general outlook and views of the impact of Covid-19, respondents highlighted the only positive impact of Covid-19 was in communications infrastructure (due to the increased criticality of connectivity as more work from home), which continued the overall positive outlook for the sector.  Unsurprisingly, the most negative outlook was noted for airport transactions and oil & gas related midstream assets.
  • Respondents indicated that the most positive outlook in Europe was for the Nordics, Iberia and Germany, whilst in the Americas the most positive outlook was in the USA. The most negative sentiment was reserved for Greece/Cyprus, Eastern Europe, and Mexico.
  • ESG is emerging as an important consideration for investors and their LP’s across both the Americas and Europe.  Covid-19 and other events in 2020 are likely to accelerate the ESG agenda with a flow through to investment criteria.

Results from the next quarter’s survey are anticipated in mid-October.