Infrastructure assets are large, physical assets that provide essential services to communities around the world. These assets typically have long operational lives and stable cash flows, and they operate in markets with high barriers to entry.
Source: Macquarie Asset Management internal analysis. Please note that the above examples within the infrastructure sector are being provided as indicative examples only.
Source: Macquarie Asset Management internal analysis. Please note that the above examples within the infrastructure sector are being provided as indicative examples only.
Source: Macquarie Asset Management internal analysis. Please note that the above examples within the infrastructure sector are being provided as indicative examples only.
Source: Macquarie Asset Management internal analysis. Please note that the above examples within the infrastructure sector are being provided as indicative examples only.
Source: Macquarie Asset Management internal analysis. Please note that the above examples within the infrastructure sector are being provided as indicative examples only.
Source: Macquarie Asset Management internal analysis. Please note that the above examples within the infrastructure sector are being provided as indicative examples only.
Infrastructure has been growing in popularity in recent years, with unlisted infrastructure raising $US87 billion of capital in 2024.1 As with most private markets investments, unlisted infrastructure has traditionally been reserved for institutional investors, and generally inaccessible to high-net-worth investors. However, several trends are helping to democratise access. A broader segment of individual investors now able to consider adding unlisted infrastructure investments to their portfolios, with a variety of ways to do so.
Megatrends
Global megatrends are shaping the infrastructure landscape and driving demand over the long term. Top-down thematics may create a constructive environment to invest in infrastructure.
world population by 20402
energy infrastructure needs by 2050 to achieve net zero3
Global population increases, coupled with a rapidly growing middle class, are expected to substantially increase demand for electricity as more people strive to reach a higher standard of living.
Hypothetically, if everyone were to consume as much power as a typical middle-class individual, the world would require three times as much power than we currently have available.
Energy consumption
Growing demand for technology and digitalisation has created the need for an entirely new class of real asset solutions in the form of data centres, fibre networks, communication channels and towers. It has also transformed how traditional infrastructure is designed and built.
Management teams can design ‘digital twins’ to explore operating efficiencies, deploy remote sensors and drones to organise predictive maintenance, and artificial intelligence to accelerate decision making. The impact of technology on infrastructure investing is likely to continue to accelerate.
Infrastructure is expected to play a crucial role in transitioning to a net zero world, with substantial investment required to limit global warming and achieve net zero carbon emissions by 2050. According to the Bloomberg New Energy Finance (BNEF), total investments required in energy infrastructure alone could be between $US92 trillion and $US173 trillion, or between $US3.2 trillion and $US6 trillion per year. 5
With governments globally more indebted than ever, this means there is a need and opportunity for private capital to step in and fill the investment gap.
Infrastructure has been a stable asset class typically underpinned by strong economic fundamentals, delivering a number of potential benefits for clients.
The stable demand for essential services can translate into reliable and consistent returns
The critical need for infrastructure may provide a protection against market volatility
Infrastructure often exhibits low correlation to other asset classes6
Long-term contracts and regulated returns contribute to stable and attractive yield
Infrastructure can include cost pass-through mechanisms that may hedge against inflation
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