With greater private equity participation in infrastructure
projects, a clear approach to construction contracts and project
governance is essential.
“The global
economy is on the cusp of an infrastructure
revolution.”
Larry Fink, CEO, BlackRock (The
Economist, Why BlackRock is betting billions on
infrastructure)
The last decade has seen a global surge in private equity (PE)
investment in infrastructure assets. According to
IJInvestor's Fund & Investors Report Full Year 2023, PE
funds have raised nearly US$635 billion in infrastructure capital
since 2019, with US$108.7 billion raised in 2023 alone.
Infrastructure funds are also growing in size. While overall
funding slowed in 2023, the cumulative target size of
infrastructure funds in capital-raising mode jumped in 2023 to
US$172.9 billion, compared to USD$136.8 billion in 2022. Among the
many factors behind this growth, The Economist
magazine highlights three prominent trends:
