Principal Asset Management - Fri, 02/07/2025 - 21:36

Private Infrastructure: 2025 Outlook

Key takeaways

In 2024, infrastructure debt represented a record 24% of overall private placement activity within investment grade (IG) of $150bn and a record 16% of capital markets activity among broader global issuance of $566bn (up 42% YoY overall and 100% YoY within capital markets).
Transaction volumes in 2024 globally were up 16% YoY to $1.16tn, near the record high set in 2022 of $1.25tn with North America continuing to be the largest market followed by Europe.
Infrastructure debt funds represent only 15% of overall infrastructure AUM, which is expected to present unique opportunities for dedicated credit managers given approximately $400bn of infrastructure equity dry powder remains available into 2025.
We believe pent-up demand for M&A, massive public infrastructure funding deficits and high levels of dry powder in private equity point towards a record level of activity in 2025 for both private infrastructure equity and debt investors.

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Principal Asset Management

With public and private market capabilities across all asset classes, Principal Asset Management^SM and its specialist investment teams are focused on harnessing the potential of every opportunity to secure an advantage for its clients.

The 28th largest manager of worldwide institutional assets under management of 411 managers profile, Principal Asset Management applies local insights with global perspectives to identify compelling investment opportunities and deliver distinctive solutions aligned with client objectives.¹

Principal Asset Management is the global investment management business for Principal Financial Group® (Nasdaq: PFG), managing $559.1 billion in assets and recognized as one of the “Best Places to Work in Money Management” for 13 consecutive years.^2,3

Learn more at PrincipalAM.com

^{1 Managers ranked by total worldwide institutional assets as of December 31, 2023. Pensions & Investments, “Largest Money Managers,” June 2024.}
^{2 Principal Asset Management AUM as of December 31, 2024.}
^{3 Pensions & Investments, “The Best Places to Work in Money Management” among companies with 1,000 or more employees, December 2024.}

Edward Kakenmaster
Managing Director, Insurance Sales & Relationship Management
Kekenmaster.Edward@principal.com
+1.515.878.1334

711 High Street
Des Moines, Iowa 50392

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