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A new era in infrastructure fundraising Just as those two dynamics are impacting today’s fundraising environment, we also observe an evolution in the manager landscape from a broader market perspective. In our view, the market has entered into what we call “Infrastructure 3.0,” which is characterized by several key features distinguishing it from previous eras – particularly Infrastructure 1.0 and 2.0. Infrastructure 1.0, which spanned 2003-2016, was marked by an increasing number of managers raising an increasing amount of capital. The fundraising "equation" during this time was linear – more managers and more capital. During this phase, expanding the breadth of investment opportunities and participants in the market was the primary focus. Infrastructure 2.0 lasted until 2023 and was defined by the advent of mega funds. This era saw an increased concentration of capital in fewer large managers who had matured, emerging as industry leaders due to their size and performance. During this period, the fundraising equation became exponential – a similar number of funds, but larger amounts raised overall. These large funds began to consolidate their influence, attracting substantial capital and shifting the focus towards size and scale. As they attracted more capital, smaller and mid-sized funds faced longer fundraising timelines. Enter Infrastructure 3.0. Today, the larger managers have established their market position, but we see both the need and the demand for new managers to address the gap in the small and middle market. Where is the market headed? We believe Infrastructure 3.0 will be characterized by an increasing number of emerging managers and spinouts, including niche players focused on specialized sectors.