Infrastructure – Brightening Horizons

Although fundraising in infrastructure was more subdued in 2023, M&A continued to play a crucial role in recycling and putting capital to work across the sector. However, the macro-economic headwinds which led to inflation and higher borrowing costs caused price dislocation between buyers and sellers of infrastructure assets, resulting in lower volumes of transactional activity than in recent years.

The outlook for infrastructure M&A in 2024 appears far more positive. We and our clients expect more infrastructure deals to get airborne in 2024, driven by a number of factors, including less volatility in debt markets, a narrowing of bid-ask spreads and pressure on fund managers to deploy or return their 'dry powder'.