Hybrid hotspots
Hybrid infrastructure assets, which don’t fit traditional categories, attract core-plus and value-add funds due to their mission-critical services, recurring demand, and customer stickiness. Hotspots include specialized equipment rental, commercial vehicle leasing, industrial services and business services.
Across these hotspots,
infrastructure
funds are showing greater flexibility around traditional requirements. They are now willing to relax certain constraints if the asset’s overall risk-return profile aligns with their objectives.
What matters most is that the business demonstrates long-term, durable demand. Even if individual contracts are short, the overall demand profile must be visible and enduring. Assets should ideally be oriented toward serving traditional infrastructure sectors and benefiting from trends such as decarbonization, digitalization, aging populations, regulatory tightening and increased supply chain resilience.
2026 outlook
This year, we are likely to see a further convergence of private equity and infrastructure funds, especially around hybrid assets. As the hybrid infrastructure sector matures and the investment thesis evolves, more funds and teams will explicitly straddle both. This evolution will be a key feature of the infrastructure investment universe in the coming years.
