Key Takeaways
- • Nearly two-thirds of institutional investors globally intend to increase allocations to infrastructure equity and private equity over the next three to five years, according to a survey of 700 investors by IFM Investors.
- • The survey captures sentiment among a significant institutional investor base spanning multiple geographies and asset classes, reflecting broad appetite for alternative asset exposure in longer-duration strategies.
- • Infrastructure equity and private equity continue to compete for capital flows within institutional portfolios as yield-seeking investors seek returns above public market benchmarks.
Summary
A global survey of 700 institutional investors conducted by IFM Investors reveals sustained institutional demand for alternative assets, with almost two-thirds of respondents indicating plans to increase their exposure to infrastructure equity and private equity allocations over the next three to five years.
The survey findings underscore ongoing capital reallocation trends among large institutional investors—including pension funds, sovereign wealth funds, endowments, and family offices—toward less liquid, longer-duration asset classes. This shift reflects both the secular tailwinds driving infrastructure investment globally (demographic aging, urbanization, energy transition) and the structural appeal of private equity's diversification and return potential relative to traditional equity and fixed income markets.
The three to five-year investment horizon cited in the survey suggests institutional investors are positioning for sustained engagement in alternatives, rather than tactical adjustments. This timeframe typically aligns with major portfolio reviews and strategic asset allocation rebalancing cycles, indicating that planned increases reflect deliberate capital deployment strategies rather than cyclical shifts.
The results from IFM Investors' survey constitute a barometer for institutional capital flows in the alternatives space and carry implications for GPs seeking to raise capital across both infrastructure and buyout platforms during an extended fundraising environment.
The survey findings underscore ongoing capital reallocation trends among large institutional investors—including pension funds, sovereign wealth funds, endowments, and family offices—toward less liquid, longer-duration asset classes. This shift reflects both the secular tailwinds driving infrastructure investment globally (demographic aging, urbanization, energy transition) and the structural appeal of private equity's diversification and return potential relative to traditional equity and fixed income markets.
The three to five-year investment horizon cited in the survey suggests institutional investors are positioning for sustained engagement in alternatives, rather than tactical adjustments. This timeframe typically aligns with major portfolio reviews and strategic asset allocation rebalancing cycles, indicating that planned increases reflect deliberate capital deployment strategies rather than cyclical shifts.
The results from IFM Investors' survey constitute a barometer for institutional capital flows in the alternatives space and carry implications for GPs seeking to raise capital across both infrastructure and buyout platforms during an extended fundraising environment.
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