The Infrastructure Pivot: Why 2025 Is the Year of Long Term Capital
rivate markets are in the middle of a structural reallocation. In the first half of 2025, real assets, particularly infrastructure, captured 26 % of all US private capital raised, up from 19 % a year earlier. On the other hand, private equity’s share slipped from 64 % to 56 %.
Global fundraising tells the same story: infrastructure strategies secured $48 billion in Q1 alone, the third highest first-quarter total in 5 years, while private equity is on track for a 20 % annual decline.
The rationale is straightforward. Infrastructure offers inflation linked yields, predictable cashflows and an earlier return of capital than most buyout strategies. These features have become highly attractive to institutional allocators, pension funds, insurers, sovereign wealth funds, at a moment when exit markets for private equity remain constrained and liquidity is at a premium.
Recent investor surveys underline the point: 86 % expect infrastructure deal volume to grow in 2025 and nearly half admit they remain underweight against their target allocations.
The scale of demand is immense. Blackrock estimates that global infrastructure financing needs exceed $4 trillion annually through 2030, driven by the energy transition, digital connectivity and urban resilience. Brookfield’s $20+ billion infrastructure fundraising round this year is only one indication of how capital is being mobilised.
What was once considered a defensive allocation is now viewed as a core growth opportunity where the line between financial return and societal impact is increasingly blurred.
The consequence is that infrastructure is no longer a side allocation to balance portfolios but instead it is becoming a primary destination for long-term capital.
For investors repositioning away from traditional private equity, the sector offers both stability and scale. For managers and corporates, it represents the central arena in which private markets will compete for returns over the next decade.