Infrastructure Investment Report: The Collection

The need for infrastructure investment has never been greater. It is essential that we restore the world’s deteriorating roads, rails, and water systems. We must also build new sources of energy, expand digital technology to underserved communities, and construct housing, schools—entire communities—in a rapidly urbanizing world. Simultaneously, we must develop and implement the infrastructure required to slow climate change. It is estimated that $50 trillion or more will be necessary to meet all these needs.

BCG’s annual infrastructure investment report analyzes the current and future state of private infrastructure investing—the sources and amount of fundraising, the key target investment sectors, and the investment strategies and portfolio management techniques that can best help meet our infrastructure needs. Done right, private infrastructure investing can create value not only for investors but also for everyone who depends on a healthy, safe environment.

Private infrastructure fundraising and dealmaking slowed in 2023, but the outlook for the asset class remains strong and will be shaped by key trends in the near term:

• Operational excellence will be critical to creating value and future growth. The industry is maturing and consolidating; 80% of infrastructure investors surveyed for the report think operational value creation will become more important than ever.
• General partners in infrastructure investment funds held $296 billion in dry powder for further investment—an all-time high. And limited partners have increased their target allocations to infrastructure investment. These findings signal that funds are ready to seize opportunities as they arise.
• Infrastructure investment funds have shown a willingness to take on more risk. They are increasingly entering projects at earlier stages and taking on construction-related risk.