"The future of infrastructure is here," says BlackRock CEO Larry Fink at the Berlin Global Dialogue 2024. With the world in need of decarbonization, digitization, and smarter infrastructure, private capital is stepping up. BlackRock is leading the charge with major investments, including a $12.5B acquisition of Global Infrastructure Partners and a $30B initiative with Microsoft to power AI-driven data and energy projects. Fink envisions tremendous growth as public-private partnerships transform the infrastructure sector. With major investments lined up for 2025, the U.S. is poised for substantial advancements in infrastructure development.
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There is a pressing need worldwide for revitalized and new infrastructure, to modernize aging public-sector assets, upgrade digital systems, and adapt to climate change. Despite the temporary slowdown in fundraising and deal-making, infrastructure investment as an asset class remains fundamentally attractive to private capital. But investors have important choices to make. In our latest report, "Infrastructure Strategy 2024 - Creating Value Through Operational Excellence", my colleagues and I delve into the latest trends, opportunities, and strategies within unlisted infrastructure assets, offering a roadmap to navigate through rising economic challenges. Read the full report here: https://lnkd.in/gJYJnB6k #InfrastructureInvesting #OperationalExcellence
Creating Value Through Operational Excellence
bcg.com
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If unlisted infrastructure investing is your thing, this is an interesting read from the BCG folks. Thanks for sharing Andrew Claerhout.
There is a pressing need worldwide for revitalized and new infrastructure, to modernize aging public-sector assets, upgrade digital systems, and adapt to climate change. Despite the temporary slowdown in fundraising and deal-making, infrastructure investment as an asset class remains fundamentally attractive to private capital. But investors have important choices to make. In our latest report, "Infrastructure Strategy 2024 - Creating Value Through Operational Excellence", my colleagues and I delve into the latest trends, opportunities, and strategies within unlisted infrastructure assets, offering a roadmap to navigate through rising economic challenges. Read the full report here: https://lnkd.in/gJYJnB6k #InfrastructureInvesting #OperationalExcellence
Creating Value Through Operational Excellence
bcg.com
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There is a pressing need worldwide for revitalized and new infrastructure, to modernize aging public-sector assets, upgrade digital systems, and adapt to climate change. Despite the temporary slowdown in fundraising and deal-making, infrastructure investment as an asset class remains fundamentally attractive to private capital. But investors have important choices to make. In our latest report, "Infrastructure Strategy 2024 - Creating Value Through Operational Excellence", my colleagues and I delve into the latest trends, opportunities, and strategies within unlisted infrastructure assets, offering a roadmap to navigate through rising economic challenges. Read the full report here: https://lnkd.in/dBnv6KGe #InfrastructureInvesting #OperationalExcellence
Creating Value Through Operational Excellence
bcg.com
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Operational excellence and maintaining sound Governance are fundamental blocks to augment success for any entity :
There is a pressing need worldwide for revitalized and new infrastructure, to modernize aging public-sector assets, upgrade digital systems, and adapt to climate change. Despite the temporary slowdown in fundraising and deal-making, infrastructure investment as an asset class remains fundamentally attractive to private capital. But investors have important choices to make. In our latest report, "Infrastructure Strategy 2024 - Creating Value Through Operational Excellence", my colleagues and I delve into the latest trends, opportunities, and strategies within unlisted infrastructure assets, offering a roadmap to navigate through rising economic challenges. Read the full report here: https://lnkd.in/gJYJnB6k #InfrastructureInvesting #OperationalExcellence
Creating Value Through Operational Excellence
bcg.com
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In the world of complex finances and infrastructure, two powerhouse players are making waves. Blackstone has joined forces with EQT Corporation in a $3.5 billion venture to boost essential energy infrastructure. Here's what you need to know: - Blackstone is taking a non-controlling interest in key energy assets like the Mountain Valley Pipeline, vital for powering data centers and more. - This partnership is fueled by Blackstone's credit and insurance sector, emphasizing adaptable funding strategies. - The joint focus is on supporting the growing demand from AI and data center sectors where energy needs are surging. - Natural gas emerges as a linchpin for future energy solutions in this tech-focused environment. For EQT Corporation, this is a lifeline: - Proceeds will target debt reduction, shrinking their net debt from $13.7 billion to $9 billion by year-end. - The move follows their recent asset sale, underlining a commitment to a healthier balance sheet. Here's the broader perspective: - Blackstone's investment indicates a shift in finance, where alternative funding is stepping up where traditional methods often tread. - The deal aligns with Blackstone’s goal of expanding critical infrastructure investment and enhancing credit offerings. The road ahead is all about innovative solutions and strategic financial partnerships. What are your thoughts on this shift towards adaptive funding in critical infrastructure? How could it reshape the landscape for energy and tech industries? Share your insights below.
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The opportunity ahead in infrastructure investing is enormous. Currently valued at $1 trillion, infrastructure is one of the fastest-growing asset classes in private markets. What’s driving this growth? At BlackRock, we see several powerful forces coming together at the right time: changing demographics, the shift to a low-carbon economy, advances in technology, and supportive policy. Together, they are creating a once-in-a-generation moment for infrastructure investing. To unlock the next chapter of the world’s economy, there’s a need for what we’re calling the ‘infrastructure of tomorrow’—from data storage centers that support increasingly digital economies to expanded transmission lines connecting new energy sources. Additionally, there’s an urgent need to repair and revitalize existing infrastructure. And with public deficits at an all-time high, the funding gap is significant, and private capital has a crucial role to play. Our clients are eager to be a part of this moment by increasing infrastructure allocations in their portfolios – and we’re helping by bringing a wide range of high-quality infrastructure investments directly to them, as evidenced by our announcement earlier in the year to acquire Global Infrastructure Partners (GIP). To help guide our clients, we just released our new paper, The New Infrastructure Blueprint, in which Mark Wiedman, Jeetu Balchandani, David Giordano and Mark Florian dive deep into what's driving infrastructure investing globally and the role infrastructure plays in portfolios. Read the paper below and please share your thoughts! #BlackRock #Infrastructure For Institutional Use Only. https://lnkd.in/eiEUXtSV
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In this new era of #infrastructure, the importance of aligning strategy with fund structure is often overlooked. In his latest article for Infrastructure Investor, Mathias Lejeune, our Senior Director for Infrastructure Solutions, highlights that open-end funds offer more than just liquidity. They are also well-suited to meet the needs of next-generation infrastructure assets with significant long-term capex requirements. Read Mathias’s piece in full here: https://cbreim.co/3CEnrLm
Open-End Funds: Infrastructure's Future
cbreim.com
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As we have been navigating through a challenging investment environment, the strategic significance of infrastructure investment has never been more pronounced. It's against this backdrop that I am thrilled to share our latest report: Infrastructure Strategy 2024 - Creating Value Through Operational Excellence”. The report’s highlights include: - The pivotal role of private infrastructure investment in addressing the critical needs of our society, especially in the arenas of digital transformation and energy transition. - An in-depth analysis of the current state and future prospects of fundraising, deal-making, and investment performance across key sectors: Energy & Environment, Transport & Logistics, Digital Infrastructure, and Social Infrastructure. - Strategic insights into how investors should think about enhancing portfolio companies' operational performance, detailing three essential levers that have proven instrumental in maximizing returns. Read the full report to delve deeper into these insights. https://lnkd.in/ehnEg4zc #InfrastructureInvesting #OperationalExcellence
Creating Value Through Operational Excellence
bcg.com
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Although opportunities for future investments in infrastructure are numerous, the key to generating strong returns lies in boosting operational performance. Our analysis of performance data for 585 infrastructure companies held in private portfolios shows that annual total shareholder returns on these investments averaged 6.8% from 2018 to 2023 across all investment strategies. That’s an impressive figure, given the challenging economic conditions that investors faced during this period.
Creating Value Through Operational Excellence
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Rationale for Private Infrastructure Equity From the perspective of investors, infrastructure typically exhibits the following key characteristics: Low volatility, downside protection, and stable cash flow, translating to lower risk compared to traditional private equity investments. In challenging scenarios, infrastructure investments have often yielded around 3-5% IRR, highlighting the significant value placed on protecting downside risk by investors. Infrastructure assets generally offer strong cash yields, a feature highly favored by investors. Unlike private equity where returns are typically realized upon exit, infrastructure investments often provide current dividend yields, akin to real estate private equity. The performance of infrastructure assets is frequently either explicitly or implicitly referenced. Investors highly value the reliable and predictable nature of cash flows from infrastructure investments. Are you an investor - in Infrastructure Private Equity? In your next investment decision, how reliable is your source of information?
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