“Buyouts: Private investors eye infrastructure market poised for explosive growth” by Sam Sutton featuring Eric Zoller

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  • Infrastructure fundraising on the rise
  • Trump pronouncements create uncertainty in market
  • Infrastructure experts see strong years ahead

Earlier this year, Blackstone Group said in an interview with Bloomberg it could foresee spending $40 billion on infrastructure investments if it decided to get back into that business. The announcement came as infrastructure is one of the major pillars of the administration of President Donald Trump.

Yet private infrastructure as an asset class has exploded in popularity over the past few years outside any political pronouncements. Global infrastructure funds raised $62.2 billion last year, more than any other year in the past decade, data provider Preqin says. The average fund size almost doubled to more than $1.27 billion from $672 million.

And institutional investors’ appetite for the strategy is growing. More than half the institutions Preqin surveyed said they planned to increase their allocations to infrastructure longer term. A little less than 40 percent of those surveyed said they would do so in the next 12 months.

“You’re going to hear more and more folks talking about infrastructure, not just on the LP side but also new entrants coming to market,” said Eric Zoller, founder of Sixpoint Partners.