Infrastructure Investing: Building What’s Next

Summary

Connor Teskey, CEO of Brookfield Asset Management, discusses how infrastructure has evolved from a niche to a major asset class driven by three secular themes: digitalization, surging energy needs, and supply chain rewiring. He highlights the expanding opportunity set beyond traditional assets, the role of private capital in filling funding gaps, and the attractive risk-return attributes that are drawing increasing allocations from both institutional and high-net-worth investors. He expects infrastructure to capture a disproportionate share of alternative allocations going forward.

• Infrastructure opportunity set has expanded to include data centers, telecom towers, renewables, batteries, and nuclear.
• Three durable themes (digitalization, energy demand, supply chain resiliency) remain highly relevant and will drive activity through the decade.
• Government balance sheet constraints and corporate demand for own-supply infrastructure are creating a large role for private capital.
• Infrastructure offers downside protection, recurring cash generation, and inflation protection, sitting between public equity and debt.
• High-net-worth investor access is improving and follows the long-standing institutional allocation trend.
• Infrastructure is expected to capture a disproportionate share of future alternative allocations.