Bruno Alves
High inflation has led to a sea change in the investment environment. The big question now is how long will it last? And will infra really thrive in a high inflationary period?
Some 39% of all open-end fundraising took place in the last 18 months, with a record 20 funds launched by this half-year alone. We map out the market using data from bfinance.
Our changing times call for new narratives around the asset class – and new audiences to spread them to.
We are getting the first inklings of how infra might perform in a more hostile environment, with different schools of thought forming on the asset class’s future.
A lingering drought, high-profile pollution incidents and sky-high energy bills are set to stress test a highly privatised market.
The asset class should be pleased with its record performance. The question is whether it can sustain such results in a more volatile macro environment.
Four of the 57 funds closed accounted for more than 54% of the total raised during the first half of the year.
Brookfield’s $15bn Global Transition Fund is one of the largest closes of the year, showcasing the depth of the decarbonisation opportunity.
BlackRock’s new permanent capital fund underlines how much opportunity – and risk – will come from Europe’s decision to wean itself off Russian gas.
The asset class is set to shine with investors during this high inflationary period, but social and political pressures should be kept in mind.