Institutional investors are allocating only around 2% to the infrastructure asset class, despite Regulation 28 effectively allowing for a maximum infrastructure investment exposure equivalent to as much as 45% of fund assets. This can be achieved by a 15% fund exposure to unlisted infrastructure through infrastructure private equity funds; a 15% exposure to unlisted infrastructure debt through direct exposure to infrastructure debt funds; and 15% exposure to listed infrastructure assets. Kasief Isaacs, Head: Private Markets at Mergence Investment Managers, explains some of the barriers to entry and describes Mergence’s approach to facilitating investment into infrastructure.
Mega-themes for investors: digital disruption
Since early 2023, digital disruption has been a key driver of global equity returns. We have seen increased capital spending