The vast majority – 59 percent – of the 107 institutional investors Infrastructure Investor surveyed in September and October intend to invest the same amount of capital in infrastructure this year as they did in 2024. Add to that the 35 percent of those surveyed saying they intend to invest more capital and you have a grand total of 94 percent of LPs pledging their commitment to the asset class in 2025.
That is good news for infrastructure as well as for the fund managers seeking to raise capital. It’s true that LP tickets have gotten smaller in the past two years stretching fundraising timelines significantly, but according to our Full Year 2024 Investor Report, the average infrastructure allocation continues to trend upwards, rising from 5.52 percent in 2023 to 5.67 percent last year.
Public pension funds posted the highest average at 6.57 percent, but it was private pensions that recorded the biggest jump year-on-year – going from 5.52 percent to 6.04 percent.
As for the largest commitments, US public pensions accounted for the lion’s share though it’s worth noting that Norges Bank Investment Management, which only recently began investing in the asset class, allocated the single largest ticket last year when it committed €900 million to Copenhagen Infrastructure Partners V. Other large cheques went to Macquarie Infrastructure Partners VI and DigitalBridge Partners III, each one receiving $500 million from the California Public Employees’ Retirement System.
The above provides a good example of what the industry can expect in 2025: LP capital continuing to flow into multi-regional or global funds and sub-sectors such as digital infrastructure, renewables and decarbonisation persevering as top investment themes.
You can download the report as a PDF HERE and download the data HERE.