Prime time for private markets: Infrastructure

To preserve value, fund managers have had to be hands-on in dealing with the impact of COVID-19 across multiple asset classes. Managers who have real-time information and strong asset management capabilities have found this to be easier.

COVID-19 has highlighted a digital divide, which points to investment opportunities in areas such as fibre optics and broadband. In developed markets, there are considerable opportunities to renew old infrastructure such as roads, rails and hospitals, and to accelerate technologies such as 5G and renewable energy. In emerging markets, the need for investment in both traditional and digital infrastructure is greatest. As a result, we expect AuM in infrastructure funds to double by 2025.

COVID-19 disruption has underlined the importance of active management and ensuring you have the real-time data and analytics—and people—to support it. Infrastructure managers also face increased scrutiny of both their ESG commitment and their delivery of life essentials that now include broadband in addition to water and electricity.

Making these plays will require you to reconfigure your strategies and capabilities, but doing so will give you the chance to drive more value.