Private Infrastructure

With capital locked up for years, scenario analysis is especially valuable for Private Market investors. We provide a framework for mapping returns on new investments if the US 10-year yield hits 6.5%, a level last seen in 2000. Just do not expect the risk premiums of that era.

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.

While AI deployment creates compelling investment opportunities, hyperscale facilities are not the only path forward. Investors should consider Office conversions into colocation Data Centers as the next dollar opportunity.