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Laxman Pai, Opalesque Asia: Global infrastructure assets under management (AUM) are expected to reach $1.87tn by 2026, meaning infrastructure will overtake real estate to become the largest real asset class, said a study.
"Infrastructure investments are well-positioned to reassert their benefits to investors - both old and new - and its AUM is expected to overtake real estate by 2026 to become the largest real asset class," said a report by Preqin.
According to the 2022 Global Infrastructure Report, published by Preqin, investors have historically turned to unlisted infrastructure for its stability and predictability, but the asset class performed poorly in the first half of 2020 as demand for assets such as airports, railways, ports, and roads experienced unprecedented falls in demand.
However, infrastructure rebounded strongly to post a 13.9% internal rate of return (IRR) in the year to March 2021, making up for lost ground in 2020. In Preqin's November survey, 91% of investors reported that performance met or exceeded their expectations over the past 12 months.
Nearly half (47%) of investors said they planned to increase their long-term allocation to the asset class, with just 7% intending to reduce it.
Infrastructure has a crucial role to play in meeting environmental, social, and governance (ESG) targets. According to Preqin data, infrastructure fund managers have the highest average fund manager ESG transparency metrics (31%) across alterna...................... To view our full article Click here
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