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
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.
GIIA CEO Lawrence Slade spoke about the opportunities for US States to drive inward investment through partnerships with private infrastructure investors during a panel discussion convened by the National Governors Association on 24th June.
The Infrastructure Financing Summit, a centre-piece of National Governors Association Chairman, Governor Larry Hogan’s year-long Infrastructure: Foundations for Success initiative, focused on leveraging private sector investments, and how governors can help ensure that their states have access to the full range of infrastructure financing options.
Joining the panel with Lawrence were Governor Doug Ducie, Arizona, Governor Ralph Northam, Virginia and Global Head of Corporate & Business Development for Cintra, Carlos Ugarte.
Noting that private infrastructure currently has a proportionately smaller role in the US when compared to other markets around the World, Lawrence said there are multiple funding models that could be deployed to suit specific circumstances for individual states, including more rural states.
“Working with private investors will allow individual States and Governors to access significant funding that comes with unrivalled experience about how to economically manage, develop and operate both existing and new infrastructure and responsibly add value to communities,” said Slade.
Watch the full panel here – Financing America’s Infrastructure Future (Panel 1)
Analysis compiled by Associate Member EY, working with GIIA, reveals significant growth in members’ assets under management – rising from $500bn in 17/18 to more than $660bn – with 1,300 assets spanning 49 countries across 6 continents.
Globally, GIIA members’ assets provide the essential infrastructure needed by hundreds of millions of people every day – including utilities, energy, transport, telecommunications and social infrastructure.
Of particular note, members made significant investments in renewable energies increasing capacity to 48,000MW of wind power (up 16,300MW), 33,000MW of solar (up 20,300MW) and 14,800MW of hydro and biomass (up 7,300MW) since 17/18.
Based on responses by members, the findings show that for every £100bn of AUM, members will invest an additional £96.7bn in capex over the next five years – an increase of almost 20% since 17/18.
Click here to view the GIIA 2018/19 Global Asset Database