Infrastructure investments continue to increase in popularity in recent years. According to the expert from abrdn, the market in Europe in particular still has great potential. But caution and expertise are also required.
The need for clean energy, electrification of transport assets and digital connectivity means – the demand for infrastructure is constantly increasing worldwide. Investments in such tangible assets have become particularly popular with investors in recent years.
«Infrastructure investment has become mainstream,» said Roger Pim, senior investment director & head of strategy and business development in the core infrastructure team at investment company Abrdn.
Roger Pim (Image: zVg)
«Infrastructure investments are typically long term usually owning assets for several years, if not decades. The long-term mindset allows investors to be responsible owners while benefitting from stable and attractive returns on investment.»
Strong Need for Capital
Pim states that he believes that there are many attractive opportunities in the European small to mid-market given the strong need for capital to help drive decarbonization the supportive legal and political environment and the fact that many of the infrastructure assets are focused on specific regions.
According to Pim, the need to electrify transportation is leading to some attractive opportunities for investors especially in the field of electric trains, however, «other areas such as EV charging stations remain challenging».
