US Election Complicates Investors’ Strategies for Infrastructure Investments
Election Outlook Creates Investment Uncertainty
As the US presidential election approaches, investors find themselves navigating turbulent waters, complicating their hunt for infrastructure deals. Fund managers express caution over the viability of attractive agreements amidst fluctuating energy policies.
Fundraising vs. Deal Activity
While infrastructure fundraising saw a revival with Brookfield's record $28bn fund launch, the current deal flow is struggling to keep pace. Investors have raised $10bn in the first half of 2024, yet the all-important project opportunities remain below previous years’ levels.
- North American infrastructure funds raised increased funds but face deal scarcity.
- Political uncertainty from the election is likely to stifle crucial infrastructure initiatives.
Green Energy Transition Drives Competition
Investment sentiment is being heavily influenced by the global shift towards green energy, with companies eyeing alternative sectors like data centers. Despite the drive, the actual deal flow has not increased accordingly.
- Fund managers are exhibiting increased caution.
- Hesitance is growing with project costs being unpredictable.
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.