Investing in the backbone of the future: Infrastructure as a core portfolio allocation

Infrastructure is having a moment and as I look at the massive investments flowing into energy, transportation, digital connectivity, and water systems, I see opportunities for investors that are larger than ever before.

Beyond the headlines about government stimulus and green energy spending, I believe infrastructure investing offers some valuable traits including predictable cash flows, long-duration assets, and returns that are naturally linked to inflation.

Whether it’s private credit, energy infrastructure, or data centers, the common thread is exposure to assets that generate real cash flow and remain essential regardless of market cycles.

What Qualifies?

One of the first questions to ask is what actually qualifies as infrastructure?

Traditionally, it was easy to point to things like airports, power grids, and water systems, but as I highlight in my book Beyond Traditional, the definition has broadened and includes renewable energy platforms, data networks, and logistics hubs.

For me, the test is whether an asset provides an essential service, with high barriers to entry, and stable long-term demand? If the answer is yes, it qualifies. By contrast, speculative real estate or discretionary consumer assets don’t.

Globally, we are in the midst of a structural boom in infrastructure investment with governments doubling down on spending to drive growth, accelerate the energy transition, and build resilience.

At the same time, institutional investors are expanding allocations to this asset class.

As I point out in the book, trends like decarbonization, urbanization, and digitalization are creating trillions of dollars in demand. What excites me most is that the private sector is no longer just a bystander but a critical partner in financing and building these systems.

Core Benefits

What keeps me coming back to infrastructure is the set of benefits it offers.

Inflation protection is at the top of the list and many assets are directly linked to consumer prices through regulated tariffs or concession agreements. Then there’s the steady cash yield, which is increasingly rare in today’s markets, and the resilient demand for energy, transportation, and digital services that doesn’t disappear during recessions.

These factors give me confidence that infrastructure deserves a permanent place in a core portfolio.

I also find it compelling that infrastructure isn’t just about financial returns but also about impact.

Investment in renewable energy, clean water, or digital access means contributing to solving pressing global challenges while also generating income. Infrastructure is one of the most direct ways to align ESG goals with tangible results.

Listed vs. Private

When it comes to investing, I see two main paths, listed infrastructure and private infrastructure.

Listed options offer liquidity and easier access, which can be great for tactical allocation but also come with public market volatility.

However, private infrastructure gives more direct exposure to long-duration assets, stronger inflation linkage, and lower correlation, but it’s less liquid and requires larger commitments.

Personally, I believe a blended approach works best, balancing access and diversification across different sectors and geographies.

For me, infrastructure isn’t just another investment theme, it’s the backbone of the future global economy.

With the sheer scale of modernization required in energy, transportation, and digital systems, I see this asset class as sitting right at the intersection of necessity and opportunity, offering predictable income, inflation protection, resilience, and meaningful impact.