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Key takeaway
Private infrastructure, which invests in the physical, privately held assets that support essential services, have the potential to provide portfolios with steady cash flows, inflation hedging, and improved diversification.1
What is private infrastructure?
Private infrastructure invests in privately held physical assets that support essential services. These assets typically operate under exclusive long-term contracts.
Private infrastructure represents a growing investment opportunity. In 2010, global assets under management (AUM) stood at US$185 billion. By 2024, AUM rose to US$1.4 trillion. By the end of 2030, the asset class is expected to more than double, to almost US$2.9 trillion.2
Types of private infrastructure
Like other parts of the private markets, the private infrastructure universe comprises many sub-asset classes.
| Description | Feature | Examples | |
|---|---|---|---|
| Digital infrastructure | Enables cloud compute, AI, and the 5G to 6G transition, among other technological applications | Often supported by long-term contracts |
|
| Engergy infrastructure | Supports electrification and power applications | Frequently regulated or contracted cash flows |
|
| Transportation | Keeps commerce moving | Revenue generated through tolls, tariffs, and long-term contracts |
|
| Water and waste systems | Ensures access to clean water and sustainable disposal methods | Municipally governed with steady demand |
|
For illustrative purposes only.
Identifying the private infrastructure opportunity
There are several reasons investors might consider a private infrastructure allocation, including the potential for:
Steady cash flows
Infrastructure demand often holds steady even as the broader economy shifts. For example, households and businesses need clean water in all environments, so water treatment facilities continue operating and generating revenue. As a result, infrastructure investments may help support stable cash flows across market cycles.
Inflation mitigation
Because private infrastructure business models often include inflation-linked pricing increases, they may provide potential inflation mitigation benefits. Toll roads, utility services, and cell towers, to name a few examples, often operate under frameworks that allow them to adjust rates in line with the consumer price index.
Durable thematic tailwinds
Infrastructure investment intersects with several themes that are likely to endure for years to come, such as AI expansion, electrification, energy security, climate resilience, and more.
Low correlations to other asset classes
Private infrastructure has low correlations to public assets and some other private assets, such as private real estate.3 This means that if these other asset classes experience stress, private infrastructure performance could offset potential downturns, improving overall portfolio diversification.
It’s worth noting that with these potential benefits come attendant risks. Private infrastructure assets, like other private investments, are less liquid than public assets. Investors should carefully consider their objectives, risk tolerance, and liquidity needs when evaluating whether private infrastructure investments are a suitable component of their portfolios.
The bottom line
Investors in search of relatively stable cash flows and inflation protection may wish to consider a private infrastructure allocation as part of a diversified portfolio. In our view, this asset class represents a broad and growing opportunity set and a compelling avenue to access investment megatrends likely to persist well into the future.
1Diversification does not ensure a profit or guarantee against loss.
2Preqin, “Private Markets in 2030,” 2025.
3Refinitiv, Preqin, 31 December 2006 - 30 September 2025. Past results are not necessarily indicative of future results.
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Disclosures
For financial advisor and institutional use only. Not for use with the public. All investing involves risk. Diversification and active investment do not ensure profit or protection against losses. This is for educational and informational purposes only. Nothing herein constitutes investment advice or a recommendation and should not be relied upon as a basis for making an investment decision. This document does not constitute an offer to sell, or a solicitation of an offer to buy, any security or instrument, or a solicitation of interest in any Wellington vehicle, account, or strategy. Opinions expressed reflect the opinions of the author(s) as of the date indicated and are based on the author’s opinions of the current market conditions, which is subject to change. Past events and trends are not necessarily indicative of future events or results. Forward-looking statements should not be considered as guarantees or predictions of future events. While any third-party data used is considered reliable, its accuracy is not guaranteed. This material and/or its contents are current at the time of writing and may not be reproduced or distributed in whole or in part, for any purpose, without the express written consent of Wellington Management.