Infrastructure

The 2026 next dollar playbook is about cross-asset relative-value investing. We move underweight Private Credit but not for reasons investors expect–BDCs are now longs. We shift to overweight Infrastructure and real assets more broadly–Publics included.

Private Infrastructure is superior to Public in both operational efficiency and inflation protection. However, current valuation spreads favor incremental Public deployment. Investors should consider a balanced approach between the two.

While the US is the pioneer, Europe will follow suit—more rapidly than expected. It is not a question of if GenAI will boom in Europe, but when. Europe’s Data Center growth is already strong today, but a US-style boom is just around the corner.

Asset class expectations show mixed shifts from 2024, with Real Estate seeing substantial upgrades and Private Equity benefiting from Venture Capital improvements. Private Credit return expectations decline from 2024 but remain relatively attractive. Infrastructure shows varied dynamics across sub-strategies, with Value-Add offering strong return potential. Within Hedge Funds, Long-Short Equity shows higher tactical returns while Multi-Strategy leads strategic projections.