![\"\"](\"https:\/\/media.top1000funds.com\/wp-content\/uploads\/2026\/01\/Picture1-2.png?strip=all\")
Source: IFM Investors Private Markets 700 Global Investor Barometer 2025<\/p>\nPublished in partnership with IFM Investors<\/p>\n
Asset owners hunting for new private market opportunities amid rising geopolitical volatility increasingly include Europe as a priority destination.<\/p>\n
The shift in sentiment is clear: Half of global institutional investors now identify the region as a key target for infrastructure debt, and 44 percent for infrastructure equity.<\/p>\n
\u201cInfrastructure is increasingly seen as a way to generate alpha and boost portfolio performance,\u201d said Mercer\u2019s global head of real assets, Alan Synnott.<\/p>\n
\u201cIn Europe, clients are typically drawn to infrastructure for its consistent returns and stabilising effect on portfolios. In Asia, approaches vary widely, reflecting the different levels of market development and sophistication across countries.\u201d<\/p>\n
Source: IFM Investors Private Markets 700 Global Investor Barometer 2025<\/p>\n
The sustainability edge <\/p>\n
One factor driving the appeal is Europe\u2019s sustainable edge, with investors in North America, APAC, Europe and the Middle East listing sustainability as a financial driver for value creation and a top priority in their private market decisions.<\/p>\n
North America is a long-term leader in energy infrastructure and data centres. \u00a0But Europe also offers a well-established market with private sector participation across a range of sectors, giving investors broader exposure to themes, said Andrea Mody, head of North America, clients and strategy at IFM.<\/p>\n
\u201cPrivate infrastructure in North America is still evolving as an asset class compared to Europe, where the market is more mature, with its strong regulatory systems, history of public sector and private sector cooperation, and long track record of private sector capital in infrastructure,\u201d Mody tells Top1000funds.com.<\/p>\n
\u201cInvestors see Europe as an attractive destination, particularly those focused on sustainability and clean energy. When it comes to energy, North America is still viewed as an enormous market but it\u2019s more an \u2018everything, everywhere, all at once strategy\u2019 rather than just about renewables.\u201d<\/p>\n
![\"\"](\"https:\/\/media.top1000funds.com\/wp-content\/uploads\/2026\/02\/Percentage-of-respondents-citing-an-emerging-infrastructure-area-among-their-top-three-most-promising-1.png?strip=all\")
Source: IFM Investors Private Markets 700 Global Investor Barometer 2025<\/p>\n
Europe\u2019s leading position in renewable energy infrastructure represents a meaningful shift from just a couple of years ago when, according to Mody, North America was probably the leading place to invest.<\/p>\n
\u201cSome of the geopolitical changes, and question marks around energy security and defence, have caused hope for higher growth in Europe and investors are seeing Europe as an attractive and relatively safe destination where many investors believe they\u2019ll have more policy certainty in the near term,\u201d she said.<\/p>\n
Growth, digitisation and decarbonisation<\/p>\n
Asia Pacific (ex-Australia and New Zealand) ranks as the fourth most attractive region for private market investors, according to the IFM report, with 41 per cent looking at the region for infrastructure debt and 38 per cent for infrastructure equity.<\/p>\n
When it comes to digitisation, IFM sees a lot of opportunities across the region, but especially in developing Asia where digital penetration rates are still very low compared to more developed markets.<\/p>\n
Australia\u2019s largest superannuation fund, AustralianSuper, has also identified digitisation and sustainability as strong themes and attractive drivers for the asset class. The A$387 billion fund has increased its allocation to digital infrastructure, particularly data centres in North America, over the last several years, according to Roger Knott, acting head of real assets.<\/p>\n
Market appeal <\/p>\n
The IFM Investors\u2019 second annual Private Markets 700 report also found that different investors like private infrastructure for different reasons.<\/p>\n
Investors agree that infrastructure can add diversification, stable income, and long-term growth to a portfolio, but certain characteristics stand out depending on regional priorities.<\/p>\n
\u201cAs infrastructure strategies become more sophisticated, investors across regions appear to be aligning their capital with distinct priorities, whether focused on performance, stability or sustainability,\u201d the report states.<\/p>\n
![\"Armit](\"https:\/\/www.europesays.com\/europe\/wp-content\/uploads\/2026\/05\/1700688602507.jpeg\")
Armit Bhambra<\/p>\n
Among European investors, there are three key nuances, said Armit Bhambra, head of client solutions EMEA at IFM. They are a sharp focus on risk management, regulatory stability and sustainability.<\/p>\n
\u201cThere is a significant focus on risk management, specifically diversification and inflation-hedging to build portfolio resilience,\u201d Bhambra said.<\/p>\n
\u201cInvestors in the region are concerned about\u00a0inflation, with one cause being the evolving tariffs position in the US. Many are\u00a0looking to private markets to help them insulate their\u00a0portfolios from this risk. Asset classes like infrastructure, where revenues can be quite directly linked to changes in inflation, are increasingly seen as helpful portfolio construction building blocks.\u201d<\/p>\n
Regulatory stability <\/p>\n
Bhambra said investors in Europe are also looking for regulatory stability because it enables them to make long-term high conviction investments.<\/p>\n
\u201c \u2018Our survey indicates that investors view Europe\u2019s regulatory environment as an important factor when making allocations to private markets in the region, due in part to their long-term nature of those investments,\u201d he said.<\/p>\n
\u201cSustainability is really important to European and EMEA investors too, underpinned by a belief that the energy transition is unstoppable, irrespective of momentary political changes and momentary thematic changes.\u201d<\/p>\n
At AustralianSuper, sustainability is deeply embedded into the group\u2019s governance and stewardship practices.<\/p>\n
\u201cESG (Sustainable Investing) is something that we\u2019re very attuned to,\u201d Knott said in the IFM Report.<\/p>\n
\u201cEnvironmental impacts, governance and other social issues are front of mind across our investments. In infrastructure we pay strong attention to supply chain and labour condition standards.\u201d<\/p>\n
According to the research, infrastructure\u2019s defensive, sustainable characteristics have special appeal to EMEA and Asia Pacific investors, while in North America, investors appear to be drawn to the asset class\u2019s growth potential, especially in private infrastructure.<\/p>\n
In North America, 48 per cent of infrastructure equity investors cite higher returns as their primary motivation, based on IFM\u2019s research.<\/p>\n
The IFM report found that North American investors expect net returns in the vicinity of 13.5 per cent from infrastructure equity and 9.7 per cent for infrastructure debt. This compares to 11.8 per cent and 7.7 per cent year\u2011on\u2011year in 2024, respectively.<\/p>\n
Awash with opportunity <\/p>\n
![\"\"](\"https:\/\/media.top1000funds.com\/wp-content\/uploads\/2026\/02\/Andrea-Mody.png?strip=all\")
Andrea Mody<\/p>\n