Ropes over a blue wall
FOR INSTITUTIONAL PRACTITIONERS

Investment Directions

This edition focuses on the growing need for diversification and return enhancement through alternative assets like infrastructure. We also explore liquidity management strategies amid high interest rates, highlighting opportunities in private credit and an active approach to fixed income.
IN FOCUS

Financing the future through infrastructure

Infrastructure is set to become one of the fastest-growing private market segments.1 Societies are grappling with various infrastructure challenges, including energy security pressures and the low-carbon transition, demographic change (such as population growth in emerging markets) and urbanisation, realigning supply chains, and the computing and energy infrastructure needed to power AI.

Significant capital is also needed to renew ageing infrastructure in developed markets (DM) – a challenge exacerbated by high public debt levels for DM governments, meaning private capital will play a critical role in funding infrastructure investment.

Explore how these trends are shaping the future of infrastructure investing and the opportunities they present for institutional practitioners.

Data centre demand is expected to grow at a 12-15% CAGR by 2030

Global data centre capacity in gigawatts (GW), 2023-2030

Chart shows growth of data centres due to AI uplift with 12-15& CAGR by 2030

Source: McKinsey AI Trends October 2024, BlackRock Investment Institute November 2024 and Bain & Co April 2024. Note: there can be no assurances that any forecasts or estimates will materialize or that any market trends will continue.