Countries with best infrastructure in the world: Infrastructure refers to the underlying physical framework, the public works that facilitates the smooth running of a country. It includes roads, bridges, airports, railways, seaports, communication systems and other essential structures without which a country cannot function properly.

Building of great infrastructure and maintenance of such structures are the hallmarks of good governance. In other words, in the absence of good governance, infrastructural development will be at an abysmal level.

It is safe to say that as physical and tangible as infrastructure is, it is rooted in the establishment of abstract albeit, very important principles of governance such as rule of law, transparency, and accountability.

When you look at the countries with the best infrastructure in the world like The Netherlands and Singapore, you are sure to find one unifying factor– good governance and the commitment of the government of these countries to effect positive changes and growth in their country. Besides, record of good governance as well as political and economic stability is a turn on for foreign investors who contribute in their own way to the infrastructural development of a country.

In this blog post, we shall x-ray the top countries with the best infrastructure in the world analysing the different infrastructural structures they are famous for and what makes them tick as a country. You might want to go visit these countries to explore some of these structures or even invest there.

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Top 10 Countries with the best Infrastructure in the world 2024

1. The Netherlands: The Netherlands is famous for its transportation infrastructure. This is because the country is a gateway into the continent of Europe so it is only necessary that it has the best network of durable roads and other transportation infrastructure like bridges, seaports and airports to enable smooth passage of goods coming into the European continent.

To ensure the smooth delivery of this great role it plays in the continent, the country has an approximate 80,000 miles of motorable roads of which over 90 percent of them are paved. It also boasts several expressways that connect the major seaports to different parts of the country.

Apart from this, being a first world country, the Netherlands is highly urbanized with all the popular features of a modern country. Special constructions like addition of pavements for cyclists on the roads is a genius way of keeping the roads traffic free. This has also helped to cut down on the level of pollution caused by car usage– talk about killing two birds with a stone. Other notable infrastructure in The Netherlands include their impeccable communication system and sophisticated railway network.

2. Hong Kong: This country is a region specially administered over by the Chinese government. This country boasts of some of the most advanced infrastructural structures in the world. This has proved to be a blessing to the country as investors and tourists troop into the country every year, contributing to the further growth and development of the country in different sectors.

From thousands of fully paved roads to top notch water transportation infrastructure and electrified railway system, Hong Kong has earned a place for itself among the top countries with the best infrastructure in the world.

This country is most notable for its state of the art railway system. It is even connected, via the Kowloon peninsula, to China’s railway system. It is also connected to other surrounding regions and territories by rail. Indeed, Hong Kong’s advanced railway infrastructure has led to more of its citizens using public transportation thus making the roads less clogged and the air cleaner.

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3. Singapore: Thanks to its colonial masters, Singapore started off on a good foot as a country with some formidable infrastructure which it has over the years maintained and upgraded. With over 1,000 miles of road, 99 percent of which are paved, the country is among the top countries with the best infrastructure in the world.

Before now, most of the citizens of this country used their private vehicles for transportation and this contributed heavily to increased air pollution. To curtail this unfavourable situation, the government of Singapore in its wisdom, introduced the mass rapid transportation system of public transport which helped to unclutter the roads and save people some money.

The Singaporeans also enjoy a robust and sophisticated communication system which is centrally managed by the government of the country. In 2018, the government of Singapore introduced Enterprise Singapore, an initiative geared towards endorsing and encouraging deliberate strides in infrastructural development in the country.

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4. Denmark: The infrastructural development of this country is chiefly managed by a special government department known as the Ministry of industry, business and financial affairs headed by a Minister.

 

Guided by the United Nations’ Sustainable Development Goals (SDG) the country has made giant strides in improving its governance procedures and this has paid off in the better management of the country’s scarce resources and accelerated infrastructural growth and development.

5. Canada: The government and people of Canada are very keen on monitoring the process of governance. The effect is snowballed infrastructural growth and development brought about by proper management of the country’s wealth.

Canada also welcomes investment prospects from foreign investors evidenced in its Investment in Canada Plan, budgeting over 120 billion Canadian dollars which is aimed at providing infrastructure that is environmentally friendly and sustainable. It has proved to be, overtime, a great place to do business because of its excellent telecommunication system, seamless travel infrastructure and logistics. Canadians are also known to be very friendly people.

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6. The United States of America: The United States of America is well known for its mind-blowing infrastructure especially the way all the cities are interconnected by all the main forms of transportation, that is rail, air and road.

The country also boasts historic edifices that have stood the test of time, maintained and managed by the government over the years. Indeed, the USA has proved that it is worth its salt as a developed country with provision of first class social amenities.

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7. Spain: Spain had the ninth-best overall airline seat availability and the fourth-best railroad infrastructure.

However, the quality of its port infrastructure, air transportation infrastructure, and electrical supply all came in at 12th and 24th, respectively.
Several “ghost” airports, which are airports that are never utilized, and “reckless public spending of ill-thought-out projects” plagued Spain a few years ago.

8. The United Kingdom: For airline ticket availability and electrical supply quality, the UK came in third and ninth, respectively. However, it ranked 19th for air transportation infrastructure and 29th for road quality.

Even when compared to other developed economies, the UK has one of the most advanced infrastructures globally. However, the train systems in the UK are the most expensive and frequently experience delays in all of Europe.

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9. France: France’s roads and train infrastructure both scored sixth and seventh in terms of quality. However, the infrastructure of its port ranked 26th in terms of quality, and its electrical supply ranked 14th.

Despite a decline in infrastructure quality over the past few years, the report claims that France’s “high-quality infrastructure” is still a contributing factor in the nation’s competitive economic edge.

10. Germany: In terms of available aircraft tickets, Germany ranked sixth, and in terms of railroad infrastructure, ninth.
The infrastructure of its port, on the other hand, was rated as being of the 14th and 20th highest quality, respectively.
According to the analysis, Germany’s infrastructure has gotten worse since the financial crisis, just like it has in the US.

Comparing Germany to Southern European nations like Italy, which experienced infrastructure advancements during the same time period, this is extremely apparent, the survey claims.

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Conclusion

The economic and political importance of infrastructure cannot be overemphasized. Movement of goods and people, exchange of ideas and culture, preservation of history, comfortable and high standard of living are some essential amenities that can be enjoyed only if the necessary infrastructure for them are put in place by the government. Advanced infrastructural development is a determining factor for the general growth and development of any country.

It is also a means to alleviate poverty and better the lot of the citizenry in general. Apart from the countries discussed above in this post, other countries like Japan, Luxembourg, The United Kingdom and Taiwan also boast considerable remarkable infrastructure. Continuous maintenance and upgrading at intervals of its infrastructure is a challenge which all of these countries face. This is because it costs a lot of money to keep these systems and structures running and relevant.

You might want to travel to any of these countries for vacation to see for yourself and enjoy what they have to offer. Who knows, perhaps you might even decide to relocate to any of them!

Thanks to the COVID-19 pandemic, the landscape has completely changed when it comes to our working habits, with hybrid or remote working increasingly becoming a default option for many of us.

A new report by cybersecurity platform Nordlayer has analysed where the best places in the world to be a remote worker are – and found that Europe dominated the board with not only the top 10 spots but most of the top half as well.

The 2023 Global Remote Work Index crunched the data from 108 countries and gave them scores based on how they shaped up based on various criteria, including access to stable, fast Internet connections, socio-economic benefits like healthcare as well as human rights protections.

While it’s true that people’s priorities do not align and what they value most also differs, the study found that Denmark came top overall when scores from the four key categories – cyber safety, digital and physical infrastructure, social safety, and economic safety – were taken into account.

Key findings

While the top ranking was dominated by European countries, it was also noted by the report authors that these countries – including Denmark and the other Nordic countries – were all more expensive to live in.

The one exception was Portugal, which while ranking sixth overall, was much lower down the table (56th) when it came to the cost of living, offering remote workers the best value for money among the European-heavy top 10 countries.

Europe dominates the top spots in the table overall but many of these countries fell down on digital infrastructure with Asian countries in particular excelling in this field.

Singapore took first place in this category, followed by South Korea and the United Arab Emirates. European contenders were marked down for their Internet affordability.

While they were the standout countries in this category and the frontrunners for the continent, Singapore placed 28th overall while South Korea performed better at 17th.

The countries that offered the best economic security for remote workers were led by the anglosphere, such as the United Kingdom, the United States, Australia, and New Zealand. These were closely followed by the larger European economies like Germany and Spain and other outliers like Malta.

What sets the top countries apart?

Consistently voted as one of the happiest places on the planet, Denmark scored highly across all criteria in the report.

Despite an extremely high cost of living (placing 94th) and expensive Internet (42nd), the Danes enjoy very good Internet quality (7th) and were particularly notable for their levels of social inclusion (6th) and social benefits, including healthcare (ranking 3rd).

Societal conditions also ensured the Netherlands’ position in second place. It performed particularly highly on social safety (low crime rates and so on), personal rights (3rd), and having an inclusive society (6th).

Combined with fast, stable digital infrastructure and good cybersecurity, these factors assured the Netherlands a close second place in the rankings.

In third place, Germany distinguished itself from the other countries with top billing with the most affordable Internet (1st) and as well as having the strongest legal system (1st).

Given it is Europe’s largest economy, it’s hardly surprising that Germany notably offered high economic security for remote workers (6th). However, it was marked down generally in the digital and physical infrastructure category (22nd).

Having established itself as an early leader in the market for cloud infrastructure, Amazon Web Services (AWS), the online retailer’s profitable cloud platform, is still ahead of the pack. According to estimates from Synergy Research Group, Amazon’s market share in the worldwide cloud infrastructure market amounted to 31 percent in the fourth quarter of 2023, down from 33 percent a year earlier. Meanwhile, Amazon’s main rival Microsoft slowly edges closer, growing its market share to an all-time high of 24 percent in Q4 2023. Combined with Google at 11 percent market share, the “Big Three” now account for two thirds of the ever-growing cloud market, with the rest of the competition stuck in the low single digits.

In Q4 2023, global cloud infrastructure service spending grew by $12 billion compared to Q4 2022, bringing total spending to $73.7 billion for the three months ended December 31. Looking at the full year, enterprises spent $270 billion on cloud infrastructure services, explaining why the market is so fiercely contested. Despite it’s size, the cloud market is still growing strongly. For the whole of 2023, spending grew 19 percent, while the fourth quarter saw 20 percent year-over-year growth. Equally impressive, spending grew by $5.6 billion from the third to the fourth quarter, marking the largest sequential increase ever recorded.

“This was a banner quarter for the cloud market,” John Dinsdale, chief analyst at Synergy Research Group said. “The last quarter of the year usually benefits from a seasonal bounce with quarterly spending increasing much more than in the first three quarters, but this quarter set a record. Generative AI is clearly one of the main reasons for the strong performance, as the technology is embraced by cloud providers and enterprises alike.”

The graph shows a ranking of countries according to the quality of their infrastructure in 2018. Singapore is the global leader in overall infrastructure with a value of 95.4 on a scale of 0 to 100. The United States were ranked 13th.

Additional information on global infrastructure quality

Well functioning infrastructure is a cornerstone of a modern society. As well as serving an important role in facilitating business transitions, infrastructure increases a country’s efficiency and improves the standard of living of its citizens. As such there is a positive correlation between the gross domestic product of countries and their infrastructure quality with the two sharing a cyclical relationship. Economic growth allows for additional infrastructure investment while infrastructure is a necessary component in improving economic conditions.

Infrastructure comes in various forms depending on what is required by the society in question. Transport, energy, communications, water, waste and defense are all examples of sectors requiring significant infrastructure in order to operate effectively and efficiently. Transport infrastructure is typically the most discussed form of infrastructure and a primary focus of resources, in part because it has a direct effect on the lives of citizens that is both tangible and visible. Moreover, countries well equipped with roads, rail and port facilities are better positioned to gain from trade domestically and internationally. Singapore and Hong Kong are both examples of countries who have taken a competitive advantage from their geographic location in terms of trade facilitation. Therefore is it no surprise that both are in the top ten largest ports worldwide by cargo turnover while also in the top three in global infrastructure quality.

Obviously, as the needs of societies change so do their infrastructure needs. The importance of transport and energy infrastructure is reflected in the investment strategy of the United Kingdom with future investment being heavily geared towards these two sectors. However, an entirely new area of infrastructure is becoming a requirement as societies continue to increase their use of internet and cloud based technologies.

Moreover, infrastructure also requires upkeep and improvement as time goes on. In recent years the issue of infrastructure decay has been raised in the United States. Criticism has been directed at the short-sightedness of governments in delaying necessary infrastructure refurbishments. Critics are concerned with the stagnation or decline in spending across a number of infrastructure based sectors, including construction, at a time when a number of projects are due for renewal.

Global Infrastructure Monitoring System Market Research Report 2024

The Infrastructure Monitoring System market fundamentals—definitions, classifications, applications, and an outline of the industrial chain—are first covered in the study. It goes on to detail industry plans, policies, and product standards. demonstrates cost structures, manufacturing procedures, and other topics next. Subsequently, it examines the market circumstances in the major regions of the world, taking into account factors like availability, demand, industry expansion rate, production capacity, profit margin, and pricing of products. Finally, the research suggests new investment feasibility and return analyses, as well as SWOT analyses for the projects. The most important objective of the global Infrastructure Monitoring System industry investigation is to assist customers in achieving sustainable growth by providing them with a comprehensive and insightful analysis that enables them to recognize the industry’s financial health.

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To assist financiers and other parties in making accurate choices to feed their company’s fate, the study offers the most recent and sophisticated market information on the Infrastructure Monitoring System trade. The analysis contains details about economic drivers, emerging trends, advantages, and risks. The report examines cutting-edge knowledge in the Infrastructure Monitoring System industry as well as how new technologies are used in the market to support the industry’s global expansion. A combination of primary and secondary analyses were performed on the data in the research study. Data from a variety of quantitative and qualitative sources are highlighted in the research. Based on the market classification of Infrastructure Monitoring Systems the study explores the economic and non-monetary factors propelling the growth of the Infrastructure Monitoring System sector.

Infrastructure Monitoring System market Segmentation by Type:

Hardware
Software & Services

Infrastructure Monitoring System market Segmentation by Application:

Civil
Energy
Mining
Defence
Aerospace
Others

Global Infrastructure Monitoring System market share leaders/manufacturers, geographic regions, product types, and applications all make up a well-organized market. further offers in-depth analyses for each class along with projections for its size and global market share. It also provides thorough research on a variety of industry topics, including opportunities and the structure of the market for major companies. By examining each category, investors can obtain information about the true market for a certain area.

Key Players in the Infrastructure Monitoring System market:

Nova Metrix (US)
Geokon (US)
Campbell Scientific (US)
RST Instruments (Canada)
Sisgeo (Italy)
COWI (Denmark)
Geocomp (US)
Acellent (US)
SIXENSE (France)

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The report provides useful facts and identifies the global competitors in the Infrastructure Monitoring System industry. These opponents are found in some of the most important geographical zones, such as North America, Europe, Asia-Pacific, South America, the Middle East and Africa, and the Rest of the World (ROW). There is a section in the market research devoted to these significant areas. The study’s findings give information about the economic situation in that field, including market shares, product assessments, and a SWOT analysis of the topic. Along with the top business entities, the study looks at the competitive landscape of the Infrastructure Monitoring System industry, the strategies used for recovery and promotion, market trends, market shares of the top payers, and other relevant business data.

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The industry research report examines the variables influencing the growth of the Infrastructure Monitoring System industry on a national and worldwide scale. The study examines how technological advancements have contributed to the accomplishment of the goals, which primarily include time savings, higher quality decisions, higher productivity, increased consistency, and generally more intense industry competitiveness. Barriers to products or firm growth are examined, in addition to other problems facing the global Infrastructure Monitoring System industry. The report looks into the current state of the global Infrastructure Monitoring System market as well as emerging innovations and advances.

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Billionaire investor and CEO of the world’s largest asset manager, BlackRock, Inc. (BLK) – Larry Fink – just had his company buy a large infrastructure business – Global Infrastructure Partners – for ~$12 billion. This is just the latest move in line with Mr. Fink’s big bet on the global infrastructure sector, which he recently called:

one of the most exciting long-term investment opportunities.

In fact, beyond the value inherent in Global Infrastructure Partners’ existing holdings, the plan is for its management team to lead BLK’s combined infrastructure private markets investment platform. As Global Infrastructure Partners’ CEO, Bayo Ogunlesi stated:

This platform is set to be the preeminent, one-stop infrastructure solutions provider for global corporates and the public sector, mobilizing long-term private capital through long-standing firm relationships.

Of course, it isn’t just BLK’s Larry Fink that is buying infrastructure hand-over-fist: Brookfield Corporation’s (BN) and Brookfield Asset Management Ltd.’s (BAM) Bruce Flatt is pouring hundreds of billions of dollars into infrastructure through both its publicly traded entities as well as its private funds to make his company the world leader in infrastructure investing. Other leading asset managers such as Blackstone Inc. (BX), KKR & Co. Inc. (KKR), Ares Management Corporation (ARES), The Carlyle Group Inc. (CG), and Apollo Global Management, Inc. (APO) are also investing aggressively in the space.

In this article, we will discuss why we believe the world’s leading asset managers are pouring hundreds of billions of dollars into infrastructure investments and then share some of our top infrastructure picks of the moment.

Why Billionaire Investors Are Bullish On Infrastructure

There are five major ‘D’ factors that are driving the robust ongoing investment into the infrastructure space:

1. Demographics: The world’s leading economies are almost universally aging at a rapid pace. Moreover, particularly in places like the United States, the vast majority of the wealth is concentrated in the older generations. As a result, there is more demand than ever for stable cash-flowing investments that offer attractive, defensive, and inflation-resistant yields to fund retirements. Infrastructure – with its mission-critical, highly contracted, and generally inflation-resistant nature – is an ideal asset class for this sort of portfolio need, making it particularly intriguing for asset managers to invest in as they seek to serve client needs.
2. Development: The rapid economic growth in many of the economies of Southeast Asia and Latin America has dramatically increased the need for infrastructure in these countries. From energy to transportation to water, many of these countries still lack sufficient infrastructure to provide the basic necessities to their populations. Moreover, in developed economies – particularly the United States – there is an urgent need to upgrade much of our infrastructure, including airports, bridges, highways, and electric grid. The recently passed infrastructure bill is a start towards fixing this infrastructure, but the need is so vast that it will ultimately take a considerable amount of private sector capital to completely and sufficiently update and upgrade the U.S.’s infrastructure.
3. Digitalization: The rapid onset of the fourth industrial revolution is driving incredible demand for digital infrastructure, including towers from companies like American Tower Corporation (AMT) and data centers from companies like Digital Realty Trust, Inc. (DLR). These alternative asset managers are investing aggressively alongside these specialists to help them scale up their data infrastructure even faster. The expected demand growth – especially due to the rapid growth of artificial intelligence – remains immense, meaning that there is a lot of investment opportunity available to these asset managers.
4. Deglobalization: There is also a strong move towards reshoring manufacturing and critical infrastructure as the West is moving rapidly to decouple itself from China in the event that CCP leader Xi Jinping decides to invade Taiwan in the near future. This is leading to a surge in demand for infrastructure in the United States and Western Europe. For example, Intel Corporation (INTC) and Taiwan Semiconductor Manufacturing Company Limited (TSM) are building chip factories in Arizona as part of America’s drive toward achieving semiconductor independence from Taiwan.
5. Decarbonization: Finally, the effort to reduce global carbon emissions is also driving significant demand for increased production of renewable energy. This means that hundreds of billions of dollars – if not trillions – of additional investment will be needed in the coming decades to dramatically increase the production of solar, wind, nuclear, and other low-carbon/carbon-free forms of energy.

Our Top Infrastructure Picks

While infrastructure is our top long-term investing theme, and we are bullish on quite a few companies in the space, here are two of the opportunities that we like right now that are particularly well-positioned to benefit from these five aforementioned bullish infrastructure trends:

• Brookfield Infrastructure Partners L.P. (BIP), and Brookfield Infrastructure Corporation (BIPC).

BIP’s diversified exposure to midstream (AMLP), utilities (XLU), transportation, and data sectors gives it a very stable cash flow profile that makes it an ideal solution for retirees looking for stable, cash-flowing investments. Moreover, its strong contracted cash flow profile with significant inflation indexation makes it quite defensive and inflation-resistant.

Moreover, its substantial and diverse presence in the United States, Europe, and developing economies across the world put it in a strong position to benefit from the strong investment trends in both developed and developing economies.

BIP’s growing involvement in the data sector, including investments in towers, semiconductor manufacturing plants, and data centers, positions it to capitalize on the growing demand for digital infrastructure. As the fourth industrial revolution unfolds, BIP is well-positioned to benefit from the increasing need for data-related assets.

With exposure to various sectors crucial for reshoring manufacturing, including utilities, transportation, and data infrastructure, BIP is strategically positioned to benefit from the aforementioned trend of reshoring critical infrastructure.

• Brookfield Renewable Partners L.P. (BEP), Brookfield Renewable Corporation (BEPC).

Similar to BIP, BEP’s highly contracted, defensive, and inflation-indexed cash flow profile makes it an ideal investment for retirees looking for stable and growing cash flow.

Moreover, with a global presence and a diverse collection of renewable energy assets, BEP is positioned to remain a major player in facilitating infrastructure development in both emerging and leading economies.

When it comes to digitalization, BEP’s role as a major producer of electricity makes it an important player, as leading AI powerhouses such as Amazon.com, Inc. (AMZN) have partnered with them to power their facilities.

Deglobalization will once again likely help BEP as the growing need for infrastructure in the United States will drive greater demand for electricity that BEP produces.

Last, but not least, BEP is at the forefront of the decarbonization effort, being a leading renewable power generation company. Its investments in hydro, solar, and wind resources contribute significantly to the production of clean and sustainable energy, aligning with global efforts to reduce carbon emissions. Additionally, its recent acquisition of Westinghouse from Brookfield Business Partners L.P. (BBU), Brookfield Business Corporation (BBUC) makes it an increasingly important player in the production of nuclear power.

Given that both businesses also boast strong BBB+ credit ratings, significant competitive advantages thanks to support from one of the largest investors in the world (their parent, Brookfield), impressive track records of generating market-crushing total returns and distribution growth, and offer attractive yields well-north of 5%, both BIP and BEP offer investors compelling combinations of current yield and long-term growth potential.

Investor Takeaway

Billionaire Larry Fink’s recent major foray into infrastructure is just the latest in a long line of billionaire investors who are pouring a lot of capital into the sector. Given the bullish long-term trends of aging demographics in leading economies driving demand for stable cash-flowing investments, global infrastructure development needs, accelerating digitalization demand, deglobalization reshoring initiatives, and the push for decarbonization, we think that infrastructure is a compelling sector to be investing in right now. In BIP and BEP, investors get a compelling value proposition along with fairly defensive business models that are very well run. Investors should also note that while BIP and BEP issue K1s, they are still designed to be suitable for holding in retirement accounts. For investors who do not want to deal with K1s at all, BIPC and BEPC are K1-free economic equivalents.

Billionaire investor and CEO of the world’s largest asset manager, BlackRock, Inc. (BLK) – Larry Fink – just had his company buy a large infrastructure business – Global Infrastructure Partners – for ~$12 billion. This is just the latest move in line with Mr. Fink’s big bet on the global infrastructure sector, which he recently called:

one of the most exciting long-term investment opportunities.

In fact, beyond the value inherent in Global Infrastructure Partners’ existing holdings, the plan is for its management team to lead BLK’s combined infrastructure private markets investment platform. As Global Infrastructure Partners’ CEO, Bayo Ogunlesi stated:

This platform is set to be the preeminent, one-stop infrastructure solutions provider for global corporates and the public sector, mobilizing long-term private capital through long-standing firm relationships.

Of course, it isn’t just BLK’s Larry Fink that is buying infrastructure hand-over-fist: Brookfield Corporation’s (BN) and Brookfield Asset Management Ltd.’s (BAM) Bruce Flatt is pouring hundreds of billions of dollars into infrastructure through both its publicly traded entities as well as its private funds to make his company the world leader in infrastructure investing. Other leading asset managers such as Blackstone Inc. (BX), KKR & Co. Inc. (KKR), Ares Management Corporation (ARES), The Carlyle Group Inc. (CG), and Apollo Global Management, Inc. (APO) are also investing aggressively in the space.

In this article, we will discuss why we believe the world’s leading asset managers are pouring hundreds of billions of dollars into infrastructure investments and then share some of our top infrastructure picks of the moment.

Why Billionaire Investors Are Bullish On Infrastructure

There are five major ‘D’ factors that are driving the robust ongoing investment into the infrastructure space:

1. Demographics: The world’s leading economies are almost universally aging at a rapid pace. Moreover, particularly in places like the United States, the vast majority of the wealth is concentrated in the older generations. As a result, there is more demand than ever for stable cash-flowing investments that offer attractive, defensive, and inflation-resistant yields to fund retirements. Infrastructure – with its mission-critical, highly contracted, and generally inflation-resistant nature – is an ideal asset class for this sort of portfolio need, making it particularly intriguing for asset managers to invest in as they seek to serve client needs.
2. Development: The rapid economic growth in many of the economies of Southeast Asia and Latin America has dramatically increased the need for infrastructure in these countries. From energy to transportation to water, many of these countries still lack sufficient infrastructure to provide the basic necessities to their populations. Moreover, in developed economies – particularly the United States – there is an urgent need to upgrade much of our infrastructure, including airports, bridges, highways, and electric grid. The recently passed infrastructure bill is a start towards fixing this infrastructure, but the need is so vast that it will ultimately take a considerable amount of private sector capital to completely and sufficiently update and upgrade the U.S.’s infrastructure.
3. Digitalization: The rapid onset of the fourth industrial revolution is driving incredible demand for digital infrastructure, including towers from companies like American Tower Corporation (AMT) and data centers from companies like Digital Realty Trust, Inc. (DLR). These alternative asset managers are investing aggressively alongside these specialists to help them scale up their data infrastructure even faster. The expected demand growth – especially due to the rapid growth of artificial intelligence – remains immense, meaning that there is a lot of investment opportunity available to these asset managers.
4. Deglobalization: There is also a strong move towards reshoring manufacturing and critical infrastructure as the West is moving rapidly to decouple itself from China in the event that CCP leader Xi Jinping decides to invade Taiwan in the near future. This is leading to a surge in demand for infrastructure in the United States and Western Europe. For example, Intel Corporation (INTC) and Taiwan Semiconductor Manufacturing Company Limited (TSM) are building chip factories in Arizona as part of America’s drive toward achieving semiconductor independence from Taiwan.
5. Decarbonization: Finally, the effort to reduce global carbon emissions is also driving significant demand for increased production of renewable energy. This means that hundreds of billions of dollars – if not trillions – of additional investment will be needed in the coming decades to dramatically increase the production of solar, wind, nuclear, and other low-carbon/carbon-free forms of energy.

Our Top Infrastructure Picks

While infrastructure is our top long-term investing theme, and we are bullish on quite a few companies in the space, here are two of the opportunities that we like right now that are particularly well-positioned to benefit from these five aforementioned bullish infrastructure trends:

• Brookfield Infrastructure Partners L.P. (BIP), and Brookfield Infrastructure Corporation (BIPC).

BIP’s diversified exposure to midstream (AMLP), utilities (XLU), transportation, and data sectors gives it a very stable cash flow profile that makes it an ideal solution for retirees looking for stable, cash-flowing investments. Moreover, its strong contracted cash flow profile with significant inflation indexation makes it quite defensive and inflation-resistant.

Moreover, its substantial and diverse presence in the United States, Europe, and developing economies across the world put it in a strong position to benefit from the strong investment trends in both developed and developing economies.

BIP’s growing involvement in the data sector, including investments in towers, semiconductor manufacturing plants, and data centers, positions it to capitalize on the growing demand for digital infrastructure. As the fourth industrial revolution unfolds, BIP is well-positioned to benefit from the increasing need for data-related assets.

With exposure to various sectors crucial for reshoring manufacturing, including utilities, transportation, and data infrastructure, BIP is strategically positioned to benefit from the aforementioned trend of reshoring critical infrastructure.

• Brookfield Renewable Partners L.P. (BEP), Brookfield Renewable Corporation (BEPC).

Similar to BIP, BEP’s highly contracted, defensive, and inflation-indexed cash flow profile makes it an ideal investment for retirees looking for stable and growing cash flow.

Moreover, with a global presence and a diverse collection of renewable energy assets, BEP is positioned to remain a major player in facilitating infrastructure development in both emerging and leading economies.

When it comes to digitalization, BEP’s role as a major producer of electricity makes it an important player, as leading AI powerhouses such as Amazon.com, Inc. (AMZN) have partnered with them to power their facilities.

Deglobalization will once again likely help BEP as the growing need for infrastructure in the United States will drive greater demand for electricity that BEP produces.

Last, but not least, BEP is at the forefront of the decarbonization effort, being a leading renewable power generation company. Its investments in hydro, solar, and wind resources contribute significantly to the production of clean and sustainable energy, aligning with global efforts to reduce carbon emissions. Additionally, its recent acquisition of Westinghouse from Brookfield Business Partners L.P. (BBU), Brookfield Business Corporation (BBUC) makes it an increasingly important player in the production of nuclear power.

Given that both businesses also boast strong BBB+ credit ratings, significant competitive advantages thanks to support from one of the largest investors in the world (their parent, Brookfield), impressive track records of generating market-crushing total returns and distribution growth, and offer attractive yields well-north of 5%, both BIP and BEP offer investors compelling combinations of current yield and long-term growth potential.

Investor Takeaway

Billionaire Larry Fink’s recent major foray into infrastructure is just the latest in a long line of billionaire investors who are pouring a lot of capital into the sector. Given the bullish long-term trends of aging demographics in leading economies driving demand for stable cash-flowing investments, global infrastructure development needs, accelerating digitalization demand, deglobalization reshoring initiatives, and the push for decarbonization, we think that infrastructure is a compelling sector to be investing in right now. In BIP and BEP, investors get a compelling value proposition along with fairly defensive business models that are very well run. Investors should also note that while BIP and BEP issue K1s, they are still designed to be suitable for holding in retirement accounts. For investors who do not want to deal with K1s at all, BIPC and BEPC are K1-free economic equivalents.

“In the early days, people underestimated ‘Bayo’,” said Kenneth Chenault, former CEO of American Express, and a close friend of Ogunlesi since both were at Harvard Law School. “He was flying under the radar and then people woke up one day and saw [GIP] was a $US50 billion fund  … what he has done is amazing and historic.”

Raised in Lagos by a father who was the first Nigerian professor of medicine and a mother who ran a nursery school, Ogunlesi earned a first-class degree at Oxford University, and law and business degrees from Harvard.

He then won a prestigious Supreme Court clerkship working for Thurgood Marshall, the first black justice: “It was one of the best jobs I’ve ever had,” he said. The justice provided a model that still influences him today.

“When you watch somebody who’s a giant or an icon and see that he conducts himself as a normal person, you cannot help but learn from that,” said Ogunlesi.

“Be serious in what you do but don’t take yourself too seriously. When you become pompous, nobody wants to be around you.”

He moved to New York to work at the Cravath law firm but quickly jumped to First Boston, later bought by Credit Suisse, to work on a Nigerian gas project. Six months in, the deal died when Nigeria experienced a coup and Ogunlesi’s client nearly went to jail.

“I learnt very early on that there is a lot of political risk associated with infrastructure projects,” he said.

At Credit Suisse, Ogunlesi forged the connections that later helped GIP succeed. He ruffled feathers with a brutal early 2000s restructuring of the investment bank, and later became chief client officer.

When Ogunlesi and his co-founders struck out on their own to launch GIP in 2006, Credit Suisse’s then-CEO Oswald Grübel backed them with $US1 billion of the bank’s money. A meeting with Jeff Immelt led to $US500 million more from General Electric.

Building a business allowed Ogunlesi to implement another of Marshall’s principles: “If you can find people who are smarter than you, surround yourself with them and consider your job as a leader to be clearing obstacles out of their way and inspiring them to do the best that they possibly can.”

The first years were not easy. A $US600 million equity investment in UK waste management company Biffa in early 2008 proved disastrous. The fallout from the global financial crisis drove down activity at its customers such as restaurants and construction sites, and it lost business to fly-by-night competitors.

Telling investors in 2012 that the stake’s value had dropped to $US93 million was “the most mortifying moment in my career as CEO,” Ogunlesi said. “The moral of the story is: avoid businesses where there are no barriers to entry.”

Failed infrastructure investments are particularly painful, because margins are thinner than in traditional corporate buyouts. “You cannot afford to have an investment that turns out to be a zero,” Ogunlesi said.

Sydney airport, Melbourne port

GIP was one of the first private fund specialists to hire a powerful chief risk officer, and was an early advocate of operational improvements to boost the value of infrastructure assets. Its first investment, a 2006 stake in London City airport, sold a decade later for four times the original purchase.

At London Gatwick airport, GIP introduced oversized luggage trays and other innovations that cut security screening times by more than half, freeing passengers to spend more in restaurants and shops where GIP received a concession.

“The thing about infrastructure businesses is a lot of them are monopolies and monopolies tend not to focus on customer service,” Ogunlesi said. “There are things you can do to generate improvements in operational efficiency and customer service and, obviously, revenues.”

GIP’s sprawling portfolio also includes Sydney and Edinburgh airports, the port of Melbourne, critical US pipelines, CyrusOne data centres and Italo high-speed rail. Its companies have combined annual revenues of $US75 billion and 115,000 employees.

The BlackRock deal aims to open the door to even larger investments by leveraging the heft of a $US10 trillion asset management goliath that is a top shareholder of most global companies.

“This is not about cashing out,” Ogunlesi said. “It is about the opportunity we have as part of BlackRock to build what is without question the premier infrastructure investing business. That’s the mission I’m on.”

Most of the $US12.5 billion price tag will be paid in BlackRock shares, and 40 per cent will not vest for five years. Ogunlesi and GIP president Raj Rao will lead a division that combines GIP with BlackRock’s $US50 billion infrastructure business.

Low public profile

Though Ogunlesi will have his first boss in 18 years, he said Fink, a friend since both worked at First Boston, has downplayed the potential for conflict: “Larry said to me: ‘You will be on the board of directors, you will be my boss’. I think we have mutually assured destruction.”

Joining BlackRock will immediately increase Ogunlesi’s public profile, something he has resisted while serving on the boards of Goldman Sachs, the Lincoln Centre and two hospitals.

A pragmatist, he golfed with George W. Bush and served with Fink on Donald Trump’s economic advisory council. But he also chairs Joe Biden’s infrastructure advisory council and most of his $US220,000 in political donations went to Democrats.

Asked why he has remained so private, the father of two laughed. “I don’t need to read about myself,” he said. “I know enough about myself and who I am.”

Friends say that Ogunlesi, a passionate cricket and Tottenham Hotspur fan, makes time for them at critical moments. When Ken Frazier, another law school friend, was CEO of Merck and facing criticism for refusing to cut research budgets, Ogunlesi reassured him he was doing the right thing. Last summer, Frazier’s daughter fell ill in California while both men were at a wedding in Italy, so Ogunlesi volunteered his private plane.

Ogunlesi, a director of Topgolf Callaway Brands, said that he had become an “atrocious golfer” since knee surgery. But Chenault, who plays regularly with him, said this self-deprecation minimises his “competitive fire”.

“He is not a ‘master of the universe’ persona, but at the same time, don’t try to fool Bayo. He will shred you to pieces,” Chenault said.

Financial Times

Macquarie Group has a market capitalisation of $70 billion, and Storey is quick to say that such a valuation looks overly generous. “We do, however, think that the market implies a substantially lower value for private markets and that this BlackRock and GIP deal is incrementally positive for Macquarie’s overall valuation.”

Storey edged his 12-month target price for Macquarie up from $180 to $185; the stock edged higher on Monday to about $183, although it’s worth noting Macquarie stock has jumped.

‘Private capital needed like never before’

Perhaps the bigger story here is the 20-year bet that BlackRock chief executive and co-founder Larry Fink says the GIP deal represents. In its presentation on Friday night when announcing the deal, BlackRock said it expects the infrastructure sector to grow from $US1.2 trillion in the middle of 2022 to $US2.5 trillion by the end of the 2027 financial year, a compound annual growth rate of 16 per cent.

What’s driving this is a fascinating supply/demand equation. While Fink said on Friday night that demand was likely to come from areas including energy (particularly decarbonisation), transport and digital infrastructure, highly indebted governments simply cannot step up and supply the capital required to build this stuff.

“The unprecedented need for new infrastructure, coupled with the record high government deficits means that private capital will be needed like never before,” Fink said.

He further argues that in a world of ageing populations, where more and more investors are looking for inflation protected investments, infrastructure investing “will define the future of asset management for the next 20 years”.

Macquarie should, of course, expect the merged BlackRock/GIP to be a stronger competitor. But as Wikramanayake has frequently argued, the opportunity set in a world that needs $US75 trillion in infrastructure investment in the next 15 years means there is no shortage of growth to be had. And Macquarie’s ability to find the next pockets of infrastructure profit are legendary.

UBS values MAM at $15.8 billion based on its 2025 financial year earnings, after lifting its price to earnings multiple for the division from 15 times to 20 times.

BlackRock chief executive Larry Fink has been searching for years for the right private markets partner to make his $10tn money manager as formidable a player in alternative investments as it is in traditional asset management.

His overtures to private equity, private credit and hedge funds rarely got beyond the first meal. Often the cultures or business models clashed. When the alternatives titans got intrigued by the idea of a tie-up, they proved unwilling to give BlackRock the majority control it wanted.

Global Infrastructure Partners was different. When Fink and GIP founder Adebayo Ogunlesi met for an October dinner at Fasano, an Italian restaurant steps away from Rockefeller Center in New York, the menu included plans for a combination that could shake up the investment management industry.

Ogunlesi had built GIP in less than two decades into one of the standout firms in the lucrative private investment industry. With just 400 people, his infrastructure investment outfit had grown to hold $106bn in assets including stakes in airports in Sydney and London, ports, green energy and large pipelines.

Fink’s challenge was to convince the publicity shy Ogunlesi that his teams would thrive inside a 20,000-employee behemoth whose every move comes under a microscope, but the dinner was an unqualified hit. Fink called Martin Small, BlackRock’s chief financial officer, from his mobile phone shortly afterwards.

“That felt like my breakfast with Stan O’Neal and the menu,” he said, referring to a meeting with the then Merrill Lynch chief executive and the prop they used to sketch out plans for BlackRock’s 2006 acquisition of Merrill’s investment management business for more than $9bn, its first big deal.

For his part Ogunlesi told Raj Rao, GIP’s president, that he wanted to get the deal done.

Fink and Ogunlesi, who met when they worked at First Boston before it was bought by Credit Suisse in the 1980s, shared a vision that infrastructure investments would be what Small called “the fastest-growing part of the private markets” in the coming years.

They also believed that private capital, an industry started decades ago by small teams of mercenary dealmakers, was entering a phase of consolidation in which size, resources and the ability to win access to the world’s largest companies would be paramount.

Fink told analysts on Friday that the combination would feed and meet growing demand for infrastructure from sovereign wealth funds and rich individuals. “BlackRock and GIP will be able to connect our clients with bigger and better opportunities while also accelerating growth, diversifying revenues and generating earnings for our shareholders,” he said. “We could not be more excited.”

Deal talks began straight after the October dinner, with BlackRock giving its target the code name of “Apple” and GIP dubbing the larger firm “Banana”.

They moved at warp speed: by Thanksgiving at the end of November, the leaders had reached a handshake agreement that would see BlackRock buy all of GIP for $12.55bn in cash and stock. In December, top BlackRock managers hosted their GIP counterparts at the larger firm’s Hudson Yards headquarters. The “camaraderie” gave the evening gathering the feel of a Thanksgiving dinner, Small said.

The firms are no strangers. BlackRock is an investor in some GIP funds, and the two have competed for deals. As Fink built BlackRock into a force in traditional asset management, Ogunlesi rose to head investment banking at Credit Suisse before founding GIP in 2006 with a group of other alumni of the now-defunct bank, who will also join BlackRock.

The GIP purchase will immediately double BlackRock’s management fees from private markets, underscoring that Fink has found the headline grabbing deal he has been seeking.

“Transformative M&A has arrived,” Jefferies analyst Dan Fannon wrote in a note. Rao told the Financial Times that the deal would enable GIP “to take infrastructure to the top of the agenda for a wider world of investors and, at the same time, offer current investors a quantum leap in terms of a broader range of products and solutions”.

Still, as a publicly traded asset manager, BlackRock had to balance the need to retain and motivate GIP’s top talent with the interests of its shareholders.

The compromise it struck was that BlackRock would receive 100 per cent of the management fees on GIP funds, as well as 40 per cent of the performance fees from all future funds. GIP employees would retain 100 per cent of the carried interest in its existing funds and those it is raising.

BlackRock is also paying most of the $12.5bn purchase price in stock, handing GIP’s six founders 7mn shares now and 5mn more in five years. The six plan to share some of that with employees as part of a retention package. Collectively, the GIP team will become BlackRock’s second-largest shareholder, tethering them to the continued success of its new owner.

The deal’s impact will be felt across the private capital sector, forcing other prominent independently-owned firms to consider whether they too need a partner or the extra financial muscle of a public stock listing.

Private equity groups including CVC Capital Partners and General Atlantic have prepared plans to go public in what dealmakers predict will be a second wave of listings following the crisis-era floats of Blackstone, Apollo, KKR and Carlyle.

By bringing in public shareholders or combining with larger organisations, the private equity groups hope to expand in areas like debt, or infrastructure investment that are seen as beneficiaries of higher interest rates and beyond corporate buyouts, which have slowed as financing costs have surged.

Asset managers including Franklin Templeton and T Rowe Price have also been snapping up private markets specialists as they seek to counteract the growth of ultra-low fee index funds.

Rapidly rising interest rates have turned many investors cautious, stemming commitments to new funds and slowing the deployment of existing ones, creating new reasons for independent firms to consider finding larger partners.

Money managers who hope to capitalise from the expected flow of money from rich individuals into private markets will need to invest heavily in new products and distribution networks as well as pouring money into technology to deal with the impact of developments in artificial intelligence.

For BlackRock, the big question is whether this deal can finally unlock a sector where it has long struggled to gain heft.

“Our acquisition philosophy has always been about growth,” Fink told analysts. With GIP, “I truly believe that this will be the case again,” he said.

BlackRock’s shareholders and its entire industry have billions of dollars riding on whether he is right.