Steppes Alternative Asset Management believe that Infrastructure investments are going to be a much required class for investments over the coming decades.

From 2015 to 2030, global demand for new infrastructure could amount to more than $90 trillion; the value of the world’s existing infrastructure is estimated at $50 trillion.

Current infrastructure spending of $2.5trillion to $3 trillion a year is only half the amount needed to meet the estimated $6 trillion of average annual demand.

 

Infrastructure demand by infrastructure class (2015-30) Transport 29%, Energy 40%, Telecom 7% and Water and waste 19%.

McKinsey estimates that private institutional investment in infrastructure could increase by $1 trillion to $1.5 trillion a year from current levels of $300 billion to $400 billion per year.

Providing investment products for sustainable infrastructure investment should generate significant rewards for Alternative Asset Managers that are focused upon the infrastructure sector.

Infrastructure funds account for only $344 billion of $6,291 billion of total alternative assets under management.