Data from the London-based investment data company Preqin shows that infrastructure has become one of the fastest-growing asset classes for institutional investors globally over the last ten years. Assets under management have increased by over 15 percent every year, and the average allocation and infrastructure assets of Swiss pension funds have risen steadily over the past decade. Various factors have given the asset class a boost, one being the national banks' interest rate policy, which raised the relative attractiveness of infrastructure project investments with zero and negative rates. In Switzerland, the OPO 2 amendment was added, so since 2020 infrastructure investments have been a separate OPO 2 investment category with an upper limit of ten percent of total assets.
Yet, 2023 and 2024 were difficult for private infrastructure. Therefore, raising funds was challenging. The global rise in interest rates led to a decline in demand, making the asset class somewhat less attractive for a time. This led to the denominator effect. Asset managers have extended the fundraising period in order to achieve their fundraising targets, although the actual infrastructure market remained strong. The lower demand reduced the capital not yet invested (dry powder), but this did not cause harm.
Infrastructure fundraising: Value (in billions of USD) and amount

Political tailwind for certain sectors
The infrastructure asset class will play an important role beyond 2025. Significant capital is needed to modernize the existing infrastructure as well as for digitalization and the creation of infrastructure for renewable energies. There is also a need for investment in the supply, communication, transport and social infrastructure sectors. In addition, infrastructure systems closely linked to artificial intelligence, such as data centers and their energy supply, are also dependent on capital resources.
Many infrastructure funds focus on long-term, sustainable goals such as renewable energy. Investment incentives to expand infrastructures are being discussed worldwide. In a recently published report on the future of the EU's competitiveness, former Italian Prime Minister and ECB President Mario Draghi called for a competitive energy supply, the modernization and expansion of infrastructures, and a digitalization offensive, among other measures. As governments are not in a position to meet the necessary capital requirements, more private investments will be needed in the coming years.
Characteristics sought by institutional investors
Low interest rates back in Switzerland
Interest rates are falling, and the relative attractiveness of the asset class has increased. For pension funds, this is exactly the right time to counter the investment crisis with infrastructure investments, which will fulfill interest rate promises. According to investors, leading information companies such as Preqin and IPE, and international comparisons, the infrastructure ratio will keep rising. Some institutional investors in Switzerland may well achieve a ratio of between five and ten percent in the medium term.
The overall economic conditions for infrastructure investments will remain favorable beyond 2025. Non-listed infrastructure investments ensure long-term stability in the portfolio due to their high resistance to economic fluctuations and will therefore continue to play an important role in the investment world in the coming years.