Infrastructure: Fundraising Outlook for the rest of 2025 and Beyond

Infrastructure is no longer just about roads, bridges and utilities. Investors now view it as a broad, scalable, and increasingly customisable asset class. The rise of thematic funds, sector-specific strategies and blended public-private models is evidence of its maturity.

Institutional investors want greater specialisation and transparency. Funds that clearly articulate their risk-return positioning (core, core-plus, value-add), sector focus (e.g. energy, transport, digital) and investment style (greenfield vs. brownfield, active vs. passive) are better positioned to attract capital. Generalist, opportunistic infrastructure funds may struggle unless they can demonstrate a clear competitive edge.

Additionally, the new sectoral frontiers of emerging infrastructure sectors are transforming the investment universe. Examples include:

• Sustainable aviation fuels (SAFs), which enable emissions reduction without major aircraft or airport modifications

• Waste-to-energy projects, turning landfill gas or farm waste into renewable natural gas

• Co-located renewable energy hubs, pairing generation with energy-intensive users like data centres or hydrogen production

These sectors are often backed by government incentives or policy mandates, making them attractive for impact-focused or innovation-hungry investors. However, they may require higher risk tolerance, more technical expertise, and longer investment horizons. Infrastructure funds that can demonstrate deep sectoral knowledge and successful track records in these areas are likely to attract specialist capital and institutional first movers.

Despite compelling fundamentals, the near-term fundraising environment remains difficult for several reasons:

• Higher interest rates have pulled capital toward shorter-duration or liquid assets

• Superannuation funds in Australia have grown more cautious due to liquidity management and performance benchmarking

• Competition is intensifying — not only among infrastructure managers but also from private equity, real estate, and corporate capital

However, the long-term outlook remains strong, provided fund managers:

• Align closely with national and global policy objectives (e.g. energy transition, digital connectivity, resilience)

• Sharpen their investment themes and product structures to meet different investor needs (e.g. separate vehicles for debt, core, or growth assets)

• Build credibility through operational performance, value creation, and ESG integration

In conclusion, infrastructure in 2025 no longer represents a monolithic or peripheral asset class — it sits at the centre of major economic, technological, and geopolitical shifts. From energy transition to AI infrastructure, waste management to aviation fuel, the opportunities are broader and more diverse than ever.

But with this opportunity comes complexity. Capital is available — but it is more selective, more sophisticated, and more theme-driven. Infrastructure funds that can clearly demonstrate strategic alignment, differentiated access to assets, strong ESG credentials and the ability to execute will continue to attract investment.

Those that fail to adapt to the new reality — of macro volatility, regulatory change, and investor scrutiny — may find fundraising slower, more competitive, or even out of reach.

What’s your view?  Contact Rory here.