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Smart Money Moves In: Next-Gen Infrastructure Delivers 1.5× Returns Amid Global Investment Surge


Updated: July 20, 2025 09:34

Image Source : WPMT FOX43
A new study reveals that nextgeneration infrastructure assets—spanning energy transition, digital connectivity, and circular economy models—are yielding capital returns up to 1.5 times higher than traditional benchmarks, sparking a wave of global investor interest.
 
Key Findings and Trends
  • Infrastructure fundraising rebounded in 2024, with core and valueadd strategies seeing 2.5× and 3.5× yearoveryear growth respectively
  • 86% of surveyed investors expect deal volume to rise in 2025, with North America and Europe leading sentiment
  • Midmarket assets, especially in data centers, transport decarbonization, and hybrid energy systems, are attracting premium valuations
Why It’s Happening
  • AIdriven demand for data centers and resilient power grids is reshaping infrastructure priorities
  • Hydropower, geothermal, and circular economy ventures are gaining traction for their stable returns and environmental alignment
  • Investors are pivoting toward assets with inflationlinked pricing and longterm contracts, offering protection against macro volatility
Strategic Implications
  • Thematic investments in sustainability and digitalization are blurring lines between infrastructure and real estate
  • Governments are streamlining land acquisition and permitting to accelerate project delivery
  • Institutional capital is flowing into sectors once considered niche, such as modular construction and wastetoenergy systems
Looking Ahead
  • The study suggests infrastructure will remain a cornerstone of resilient portfolios, especially as geopolitical and climate pressures mount
  • Smart capital is expected to favor assets with strong ESG credentials and scalable operational models
Sources: Roland Berger, IFM Investors, Goldman Sachs Asset Management, InfraRed Capital Partners, Brompton Insights.

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