Infrastructure investment is poised for a significant rebound in 2025, with some private asset managers forecasting inflows could rise by as much as 50%, according to new research from the Carne Group. Last year, infrastructure fundraising dipped to just $9.7 billion, bringing total global assets under management in the asset class to $1.6 trillion.  

But sentiment has turned sharply more positive: 84% of infrastructure managers surveyed expect inflows to increase this year, and 16% anticipate inflows could jump by half. Carne’s study, which forms part of a four-part private markets research series, surveyed 100 global private markets executives, including 25 infrastructure specialists overseeing $175 billion in AUM. 

AI and Net-Zero Transition Drive Optimism 

The optimism is underpinned by secular demand drivers, including the capital-intensive requirements of the AI revolution and the net-zero transition. Managers cited the financing of data centers to support AI, the expansion of renewable power generation, and the grid upgrades needed for both EV adoption and digital infrastructure as core opportunities.  

Carne’s findings highlight how AI is shaping not only the underlying investment universe but also the operational strategies of asset managers themselves: 92% of managers already use AI for investment strategy, risk management, and compliance, and nearly a quarter (24%) view it as “very important” for delivering alpha. Over the next three years, executives expect AI’s most significant benefits to be in idea generation and investment decision-making, followed closely by enhancements to risk oversight. 

Retail Investors Emerging as Growth Engine 

Another critical growth vector is retail participation. Carne found that 72% of managers predict an increase in retail fundraising, with semi-liquid vehicles such as the UK’s new Long-Term Asset Funds (LTAFs) opening the door for defined contribution pensions and individual investors to allocate to private markets. These products are helping to democratize access to infrastructure, long viewed as the preserve of institutional allocators, while offering retail investors exposure to long-term, stable cash flows. If retail allocations double over the next decade from their current low single-digit penetration, infrastructure managers could capture hundreds of billions in new inflows. 

Wave of Consolidation Ahead 

The survey also flagged an imminent wave of industry consolidation, with 96% of respondents expecting M&A activity among infrastructure managers in the next five years and half predicting a sharp increase. Rising costs associated with governance, compliance, and technology adoption are likely to push smaller firms toward mergers or partnerships with larger players better positioned to absorb overhead.  

Carne’s Des Fullam, chief regulatory and client solutions officer, noted: “Infrastructure managers are under intense pressure to deliver returns while meeting higher governance and reporting standards. Outsourcing isn’t just about efficiency, it’s about building the resilience needed to manage complex, capital-intensive projects.”  

“The right partners can bring the specialist expertise and technology that free managers to focus on investment opportunities in energy, transport, and digital infrastructure: areas that will define the sector’s growth in the years ahead,” he added. 

Resilience and Long-Term Appeal 

While 2024 exposed vulnerabilities in the fundraising cycle, 2025 could mark an inflection point. With global government budgets strained and public funding gaps widening, the private sector is stepping in to finance affordable housing, transportation, clean energy, and digital connectivity.  

For investors, the combination of long-duration assets, predictable cash flows, and secular growth trends makes infrastructure one of the most attractive segments in private markets. Carne’s data reinforces the message that the asset class is not only resilient but also evolving rapidly, powered by AI adoption, regulatory reforms, and expanding retail access.