Despite a decline in both private equity infrastructure dealmaking and fundraising in 2023, limited partners (LPs) are planning to increase their commitments to the asset class, according to a new report by Boston Consulting Group.
Deals declined by 18% last year, while global fundraising fell by 50% from a high of $176bn in 2022 to $89bn.
BCG’s latest report, Infrastructure Strategy 2024: Creating Value Through Operational Excellence, reveals that LPs, led by pension funds and private wealth managers, expect to boost their investments by more than $600bn by 2027.
In a statement, Wilhelm Schmundt, a Managing Director, Senior Partner and Global Lead for Infrastructure Investment who coauthored the report, said: “There is a pressing need worldwide for new and revitalised infrastructure, and private investors will have a key role to play.
“It has been a challenging year, but we expect the outlook for private infrastructure investment to strengthen, driven by an ongoing adjustment of transaction prices and an increasing need to return money to investors in an economic environment where high levels of dry powder await deployment.”
