Impact-Investor.com’s Post

The growth of infrastructure mega-funds has hit an inflection point. As an Infrastructure Investor article points out, funds have swollen to unprecedented sizes, with $1 trillion raised in just five years, yet their ability to deploy capital efficiently is under scrutiny. The crux of the matter? A mounting mismatch between the volume of available mega-deals and the ambitions of these sizable funds. This matters because it's not only about managing vast sums of capital—it's about the tangible impact on our global infrastructure. With transaction volumes down and an abundance of undeployed capital, the stakes are high. The industry faces the dual challenge of overvalued assets and the looming exit risk, similar to patterns we observe in #PrivateEquity and #VentureCapital. For stakeholders in the #infrastructure domain, this serves as a call to action to foster innovative deal-making and value-creation strategies, especially when considering the critical need for investment in areas like the #EnergyTransition. This is more than a financial dilemma—it's about the efficiency and sustainability of growth in an asset class that underpins the future of our economy and environment. Check out the full article from Infrastructure Investor to understand the broader implications of this deployment dilemma: https://lnkd.in/eWxTXfaz #InfrastructureFunding #EconomicImpact

THE MULTIPLIER EFFECT: Vincent Le Guennou, CEO of the #Africa50 Infrastructure Acceleration Fund explains how the deployment of capital, following the historic first close of the fund will help close the continent's infrastructure gap, in this exclusive interview with Devex: http://bit.ly/49vwE3L

The landscape of open-ended infrastructure funds has undergone a transformation, shaped by evolving investor expectations, strategic fund management and market dynamics. In our latest article Anish Butani discusses current challenges, the rapid evolution of the open-ended fund landscape and his outlook for the sector. https://okt.to/R6T85O #InfrastructureInvesting #privatemarkets #onyourside

We are thrilled to announce a groundbreaking new partnership between Banyan Infrastructure, Elemental Excelerator, and the Milken Institute's Community Infrastructure Center!  🤝 This powerhouse trio combines expertise in tech, investment, and the nonprofit sector with a singular goal: unlocking the full potential of the historic $27-billion Greenhouse Gas Reduction Fund (GGRF). 💰🌎 Our mission?  Empowering green banks and community lenders with digital tools, technical support, and industry best practices, they need to rapidly scale up financing capabilities and fund more clean, cost-effective infrastructure in their communities. 🏘️⚡️🚗 This is a monumental opportunity to make a real difference in the fight against climate change. We're excited to collaborate with an initial cohort of community lenders, including the Clean Energy Fund of Texas, Inc, Nevada Clean Energy Fund, Access Plus Capital, and others, to build a greener, more sustainable future! 🌎 https://lnkd.in/gtvT6d9n #GGRF #ClimateAction #GreenFinance #ProjectFinance #GreenBank #CDFI

From our Guide 2024: While the infrastructure asset class in general has faced a slowdown in fundraising recently, investor appetite for gaining exposure to infrastructure impact funds is on the up, across sectors and geographies. #impactinvesting #infrastructure https://lnkd.in/eZrSc_hQ

FROM THE CURRENT ISSUE: "The year 2023 brought a slowdown in fundraising across private infrastructure funds — and private markets more broadly. Although weaker investor sentiment is frustrating for closed-end vehicles that may not reach their desired sizes, open-end strategies can face more chilling consequences: gates, long queues, suboptimal selling and even performance problems for the investors that remain. Open-end infrastructure funds, however, are weathering the change of climate well so far." Anish Butani, who heads bfinance’s infrastructure manager research, and Kathryn Saklatvala, senior director, head of investment content at the firm, recently held a question-and-answer session to discuss current challenges, the rapid evolution of the open-end fund landscape and Butani’s outlook for the sector. Read the full Q&A in the March issue of Institutional Investing in Infrastructure (i3), or click here.

Infrastructure: Fat Money, Thin Knowledge These deals don't help us answer the fundamental question: What's going on in the space? What's the dynamics? These big players should widen their attention from endowing business schools to complexity research centres emerging across the world. That's where our deepest questions are being addressed. Our world will be a better place the better we understand the social dynamics of infrastructure. #infrastructure #ppp #sustainability

🌿💰 Are you ready to tackle the challenges of deploying capital for green community infrastructure? According to Amy Cortese of ImpactAlpha lenders are facing a steep learning curve as $27 billion in Greenhouse Gas Reduction Fund awards are set to be allocated for community solar, building electrification, and local EV charging projects. The demand for project development and finance skills is higher than ever, especially in resource-starved communities targeted by the GGRF. 🏗️ Sustainable Capital Advisors and Banyan Infrastructure are among the groups stepping up to help lenders and project developers navigate the complexities of green project financing. With the energy transition unfolding on a community level, the need for talent and resources to make it happen is urgent. Are you up for the challenge of deploying historic funding to create a more sustainable future for all? Let's work together to make it happen! Read more about the challenges and opportunities in deploying capital for green community infrastructure in the article: https://hubs.la/Q02v65Nd0 #GGRF #GreenInfrastructure #SustainableFinance #CommunityDevelopment #ProjectFinance

Looking forward to speaking at the 2024 Infrastructure Investor Global Summit in Berlin on the 19th of March panel: “The attractiveness of infrastructure debt against equity: assessing viability and finding value” to discuss the current opportunity set for financing energy infrastructure projects, and how the asset class is evolving for investors and borrowers.   https://lnkd.in/gf5DPJzv