However, across all infrastructure strategies, the environment for infrastructure debt has been relatively positive. Rising rates increased the relative attractiveness of infrastructure debt (especially high yield) compared to core infrastructure equity investments, which has not seen significant changes in returns. Infrastructure debt fundraising grew slightly in 2023, accounting for almost 20% of all infrastructure funds raised (see Figure 1). This is not surprising, given an Infrastructure Investor survey from the beginning of 2023 already highlighted infrastructure debt as the most in-demand infrastructure strategy. Although there is more demand for riskier infrastructure equity strategies in 2024, infrastructure debt still remains a popular choice for institutional investors.

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