US Election Complicates Infrastructure Investment Landscape
US Election Uncertainty and Infrastructure Investments
The upcoming US election is complicating investors’ hunt for infrastructure deals, leading to a cautious approach from fund managers. Despite significant capital inflow into infrastructure funds, the actual deal flow has not kept pace, affected by concerns over green energy subsidies and tariffs.
Fundraising Resurgence
Fundraising for asset managers focused on infrastructure has revived since the launch of a record $28bn fund by Brookfield.
- The first half of 2024 saw North American infrastructure funds raise $10bn.
- Strong fundraising is continuing with nearly $7bn raised just in July and August of this year.
Investor Trends and Moving Forward
While investor interest in green energy and infrastructure is growing, the looming election raises uncertainties for project costs and timelines. Industry leaders anticipate delays in project approvals and decisions due to the upcoming political changes.
Long-Term Viability of Infrastructure Investments
Even with short-term challenges, analysts believe strong demand for infrastructure will continue post-election, with a potential uptick in deal activity.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.