Is private infrastructure the missing diversifier in your portfolio?
Private infrastructure has become an increasingly important private market asset for institutional investors seeking portfolios with lower volatility while aiming for long‑term growth.
According to research from Blackstone, individual investors are markedly under-allocated to private infrastructure compared to institutional investors. Blackstone published that institutions increased their average private infrastructure allocations by 1.5x from 2019 to 2024, with levels expected to nearly double by 2029.
Chart Source: https://www.blackstone.com/pws/essentials-of-private-infrastructure/. 2019 and 2024 numbers from Infrastructure Investor, Investor Report Full Year 2024. Expected 2029 value from IFM Investors report, November 2024.
Learn more about investing in private infrastructure with Heron.
Why do institutional investors include private infrastructure in their portfolios?
Private infrastructure primarily refers to investments in essential services that support the functioning of the global economy — including power and utilities, data centers and fiber networks, transportation systems such as roads, airports, and bridges, as well as recycling and waste management facilities.
The asset class has been the fastest‑growing asset class of private markets, compounding at approximately 26% annually over the past 24 years to now over $1.3 trillion in assets.* Investors are drawn to private infrastructure for its combination of reduced historical volatility, consistent long‑term returns, and low correlation with traditional asset classes. Together, these characteristics make it a compelling source of stability, diversification, and growth.
Why invest in private infrastructure with Heron?
- Heron offers a globally diversified approach to private infrastructure, spanning geographies, investment types, risk levels, vintage years, and risk profiles.
- We partner with some of the world’s largest and most established private infrastructure managers, representing more than $200 billion in total private infrastructure AUM.
- These fund managers bring an average of around 20 years of private infrastructure experience — providing deep expertise, disciplined underwriting, and long-term track records across market cycles.
Get a diversified private markets portfolio built to weather market volatility.
