Sector Investment 3 Days

Last updated: March 25, 2026, 5:30 PM ET

Infrastructure Fund Raising & Strategy Shifts

The infrastructure sector continues to see significant capital deployment, with KKR nearing $5bn for its third Asia-Pacific infrastructure fund, positioning it to exceed the $6.4bn raised for its predecessor and potentially set a new regional fundraising benchmark. This aggressive fundraising contrasts with some signs of cooling in specific markets, as US data centre growth slowed by 50 percent, though the broader sector is accepting volatility as the new normal, according to insights from the Global Summit Day 1. Furthermore, managers like IFM Investors are actively charting strategy adjustments, planning to increase exposure to value-add investments to complement existing core holdings, while others are embracing direct control over execution risks, such as Quinbrook building an in-house construction team to manage battery storage projects in Australia’s constrained labor market.

Real Estate Sector Activity & Valuations

Major real estate players are finalizing large transactions and fund closings, reflecting varied strategies across core and value-add mandates. NorthPoint Development successfully closed its seventh fund, its largest to date, citing a "generational buying opportunity" presented by forced sellers to deploy capital into industrial assets. Meanwhile, private equity giant Apollo is deploying $1 billion to acquire a 49 percent stake in a joint venture with Realty Income, focused on single-tenant retail properties secured by long-term net leases. In Europe, Hines acquired a UK logistics portfolio as part of its mid-box strategy, adding to eight similar assets held within its core-plus HEPP fund, even as valuation transparency remains a concern for some managers like Igneo Infrastructure Partners, which prefers quarterly valuations to avoid sudden client shocks.

Sector Expansion and Market Dynamics

Discussions at the recent Global Summit revealed several enduring themes, including the expansion of data centres internationally and the increasing appeal of infrastructure debt as a stable asset class during Day 2 proceedings. While the US market shows some moderation, global infrastructure asset classes are expanding their universe, with interest returning to areas like nuclear power and the mainstreaming of battery technologies as noted on Day 1. Europe is being viewed as a relatively safer jurisdiction for infrastructure deployment, alongside a growing appetite for secondaries transactions, as investors seek liquidity and proven asset performance amidst economic uncertainty Global Summit Day 2. Separately, utility-scale energy investment continues, exemplified by LS Power securing a $5bn gas regulatory sweetener for a major project.