Sector Investment 3 Days

Last updated: March 25, 2026, 8:30 PM ET

Infrastructure & Energy Investment Trends

Investors are bracing for continued market turbulence, accepting volatility as the new normal while simultaneously witnessing the infrastructure universe continue its expansion into new asset classes, including a notable resurgence in nuclear power and the mainstreaming of battery storage technology. This strategic shift is evident in investment mandates, as IFM Investors plans to increase exposure to value-add infrastructure projects to complement existing core holdings. Meanwhile, the sector is seeing major capital deployment, with LS Power securing a $5 billion gas regulatory sweetener just as growth in U.S. data centres appears to be slowing by approximately 50 percent.

Infrastructure Fundraising & Execution Ambitions

Global fundraising efforts remain highly active, particularly across the Asia-Pacific region, where KKR is approaching a first close of around $5 billion for its third regional infrastructure fund, setting it on track to surpass the $6.4 billion raised by its previous vehicle. As managers move from capital raising toward deployment, some are seeking greater control over execution in tight labour markets; for instance, Quinbrook is building an in-house Australian construction team to manage its pipeline of battery storage projects. Lessons from recent fund cycles are influencing strategy, with Igneo Infrastructure Partners opting for quarterly valuations to maintain closer alignment with client expectations regarding asset performance.

Real Estate Capital Deployment

The real estate sector is characterized by significant cross-border transactions and large dedicated funds, exemplified by NorthPoint Development closing its seventh vehicle, its largest fund to date, driven by the perception of a “generational buying opportunity” stemming from forced sellers. In major strategic shifts, Apollo is acquiring a 49 percent stake in a joint venture with Realty Income for $1 billion, focusing on a portfolio underpinned by long-term net leases in single-tenant retail assets. Furthermore, investment managers are reinforcing niche logistics plays; Hines recently acquired a UK logistics portfolio through its core-plus HEPP fund, bringing its total ownership of similar mid-box assets in the region to eight.

Sector Focus: Data Centres & Debt

Discussions at the recent Global Summit emphasized the continued international expansion of data centres, even as domestic growth slows, alongside the enduring relevance of infrastructure debt. The market also noted that Europe is increasingly viewed as a relatively safer destination for infrastructure capital, while the growing appetite for secondary transactions remains a key theme. These macro trends provide the backdrop for continued capital flows into physical assets, despite the broader market volatility being accepted as the new normal.