Boe Pahari, Founder of VisionEdgeOne, believes that the market for infrastructure investments is still highly attractive and offers a compelling proposition.

According to the Global Infrastructure Hub, there is a projected shortfall of USD 18 trillionin infrastructure spending to meet the UN Sustainable Development Goals by 2040 1 . This is a stark indicator of the significant funding gap for global infrastructure investment.

The demand for infrastructure investment encompasses essential upgrades to ageing infrastructure, the expansion of existing infrastructure to meet population growth, and the provision of new infrastructure to support the energy transition and society’s digital transformation. These drivers create a wealth of opportunities for private capital deployment. We believe there will be a significant need for infrastructure investment in the decades to come, driven by fundamentaldemand, historic underinvestment, and the adoption of emerging technologies in response to global megatrends.

While the market is changing in response to interest rate shifts, Boe Pahari believes that for infrastructure, there is a broadly supportive macroeconomic outlook, with public sector support for infrastructure investment gaining increasing momentum – examples include the European Union’s European Green Deal and the United States’ bipartisan Infrastructure Investment and Jobs Act. Economic uncertainty and inflationary pressure create an environment where infrastructure should be prized for its status as a defensive asset class.

In the current environment, Boe Pahari believes that successful infrastructure investing will demand origination expertise, the ability to add value throughout the investment lifecycle, and the vision to identify the infrastructure of tomorrow.