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Could now be the time for core infrastructure? Investing in core infrastructure assets like utilities and digital networks is not just smart – it’s essential. These low-risk, inflation-protected assets can offer stability and reliable returns. But core infrastructure can be more than just a passive investment. At EQT Group, “we really believe you can execute a value-adding ownership approach while actively managing risk,” says Alexander Greenbaum, head of EQT Active Core Infrastructure.

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

LPs are allocating more and more capital to digital infrastructure strategies - from 2014 to 2023, over $800 billion in capital commitments were brought in for private funds with either investments in digital infrastructure or a specified mandate to invest in the sector per PitchBook. Check out Jessica Hamlin's latest article unpacking this space!

Now’s the time for core infrastructure. Investing in core infrastructure assets like utilities and digital networks is not just smart – it’s essential. These low-risk, inflation-protected assets can offer stability and reliable returns. But core infrastructure can be more than just a passive investment. At EQT Group, “we really believe you can execute a value-adding ownership approach while actively managing risk,” says Alexander Greenbaum, head of EQT Active Core Infrastructure. Learn more from Alex’s perspective here: https://bit.ly/3C78h12

New Cool Vector episode: Investment roles within the digital infrastructure asset class have seen among the most dramatic rises in compensation on Wall Street, thanks to a surge in demand for data centers and a limited supply of "plug-and-play" talent, according to Patrick Reyes, a Principle at One Search, an executive recruiting firm focused on infrastructure. A managing director in charge of digital infrastructure firm may be offered upwards of $1.5 million per year in cash compensation, and carried interest with a notional value "well into eight figures," says Reyes. Because of the relative nascency of the asset class, professionals with backgrounds in adjacent industries are being recruited to "build up" digital infrastructure, spelling opportunity for executives in the real estate, industrial and energy sectors. Reyes notes that, in addition to the all-important ability to source transactions - often from large tech and telecom companies - the digital infrastructure asset class has great demand for investors, including CFOs, with "strategic" capabilities and mindsets. Another important talent trend can be found among operating executives in the data center industry, who increasingly are being approached by private equity firms to who want to raise hundreds of millions, even billions, in capital for innovative, new digital infrastructure strategies, but lack the right teams to put the capital to work. These operator are often pleased to find that compensation structures in private capital are more directly tied to their accomplishments than are comp packages at publicly traded companies, says Reyes. Reyes says: "I kid you not. . . at least once a week, I've got a conversation going with somebody who sits in digital infrastructure private equity, and they say to me, 'Hey Pat, if you know somebody, or a team, that does XYZ in the data center space, let me know. I'd love to meet them, because that is the type of business model that we could put hundreds of millions, if not not billions, into.'" In the war for talent, Reyes notes that energy transition and digital infrastructure firms have been poaching talent from one another, as the energy and digital infrastructure industries converge. "The future data center will look like a power plant, and the future power plant will look like a data center," says Reyes. Watch the full interview on the Cool Vector YouTube channel: https://lnkd.in/g-xzHqKN

"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.

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

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.

There are a lot of misconceptions about what private #infrastructure really means. As more people recognize the benefits of incorporating infrastructure into their portfolios, I wanted to share some of the educational resources that KKR has developed to help you better understand the asset class. #infrastructure #alternativeassets