Infrastructure fund managers expect capital inflows to rise

Global infrastructure fund managers are optimistic about capital inflows throughout 2025, despite a dip in fundraising last year, according to a survey conducted by Carne Group.

The third-party management company assessed the market sentiment of 25 executive infrastructure specialists, who represent $175bn (£129.8) in assets under management. The specialists were surveyed in January 2025.

84 per cent of respondents expect overall inflows to rise, while 72 per cent of respondents foresee a growth in retail fundraising, driven by regulatory reforms and demand from individual investors seeking exposure to long-term, stable assets.

The research suggests infrastructure as an asset class is becoming more attractive to retail investors due to their participation in semi-liquid fund vehicles and because of regulatory reforms like the UK’s LTAF regime.

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Demand for new infrastructure associated with AI and the net zero transition is also creating a positive momentum, the report notes.

“The building of wind and solar farms, data centres for AI, and the grid to power both data centres and electric vehicles all require long-term financing but come with relatively predictable long-term payoffs,” says Des Fullam, Carne’s chief regulatory and client solutions officer. “As government finances come under pressure infrastructure funding gaps in areas such as affordable housing, transport and energy will need to be filled. Even as the ESG landscape evolves, the appetite for long-term returns should trump short-term politics.”

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According to Carne, AI is also becoming a core component of the industry’s operational reform, with almost all infrastructure managers now using it to support investment strategy, risk management, and compliance.

The respondents also identified idea generation and investment decision making as areas where AI will have the biggest positive impact.