Real Assets | Investment Insight
February 28, 2023
Infrastructure Investing: Embracing Complexity in Times of Structural Change
After a tumultuous 2022, the US economic outlook for 2023 remains cloudy. Renewed uncertainty about inflation and the Fed means markets will continue to be volatile. With that in mind, we believe that infrastructure can offer key attributes—downside protection, low correlation to markets, potential protection against inflation—for investors deploying capital today.
We believe that a nuanced infrastructure investment strategy with a disciplined, price-conscious investing mindset—purchase price matters—is more crucial than ever. We see the middle-market as the most fertile ground for opportunity, especially at a time when the large capitalization space is awash in capital.
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Resilient fundamentals and robust technicals drove credit performance in the first half of 2025. Despite tariff headlines, geopolitical tensions, and policy volatility, credit held firm. Solid fundamentals, strong demand, and limited new supply helped anchor spreads. We expect these supportive dynamics to persist through year-end.
US tariffs have climbed to their highest level in nearly 90 years, fueling market volatility and creating uncertainty for corporations. The result? We see slower growth, higher inflation, and rates staying higher for longer. While we don’t foresee a recession, we expect headwinds on both supply and demand fronts.
We believe European private credit is a fast-growing market with potential to rival the US, offering scale, attractive returns, and strong geographic diversification.
