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Cornell University’s Program in Infrastructure Policy (“CPIP”) and Hodes Weill & Associates are pleased to present the findings of the inaugural 2023 Institutional Infrastructure Allocations Monitor (the “2023 Infrastructure Allocations Monitor”). The 2023 Infrastructure Allocations Monitor focuses on the role of infrastructure in institutional portfolios, and the impact of institutional allocation trends on the investment management industry. This inaugural report builds upon the success of the Institutional Real Estate Allocations Monitor, an annual report published by Cornell University’s Baker Program in Real Estate and Hodes Weill & Associates. Launched in 2013, The Real Estate Allocations Monitor is a comprehensive annual assessment of institutions’ allocations to, and objectives in, real estate investments.  


The 2023 Infrastructure Allocations Monitor includes research collected from 63 institutional investors in 16 countries. All survey responses are maintained as confidential by Cornell University.  The 2023 Participants hold total assets under management (“AUM”) exceeding US$6.8 trillion and have portfolio investments in infrastructure totaling approximately US$325 billion. Our Survey consisted of 21 questions concerning portfolio allocations to the asset class, current and future investments in infrastructure, investor conviction, investment management trends and the role of various investment strategies and vehicles within the context of the infrastructure allocation (e.g., direct investments, joint ventures and private funds). We also included questions regarding historical and target returns as well as environmental, social and governance (“ESG”) policies.


The primary conclusion of the 2023 Infrastructure Allocations Monitor is that institutions are poised to continue allocating a significant amount of capital to new infrastructure investments.  

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Infrastructure Allocations Monitor

  1. Globally, institutions are under-invested in infrastructure by an average of 98 bps versus target allocations. This under-allocation is particularly pronounced in The Americas, where institutions are currently 152 bps under-invested, with many expected to further increase their target allocations in 2024. Private pensions have the largest gap to close in terms of current infrastructure allocation versus target portfolio allocation – private pensions are 66% of the way to target allocations.

  2. The 3-year average return across all institutions (~10.7%) exceeded target return levels (~9.3%) by 141 bps. When evaluating performance based on size of institution, there was a marginal difference in the actual 3-year average return, which demonstrates the resiliency and role infrastructure can play as a portfolio stabilizer for institutional investors of all sizes.

  3. Globally, institutions continue to gravitate to higher risk, higher return Core+ and Value-Add strategies. Institutions are favoring higher return strategies as portfolios mature, and a rising rate environment impacts the relative attractiveness of SuperCore and Core strategies.

  4. Institutional investors globally are planning to grow allocations to North American infrastructure opportunities more than any other geographic region. Growth in North America is expected to be driven by the Inflation Reduction Act of 2022 (the “IRA”), which is a first-of-its-kind legislation and the single largest investment in climate and energy in U.S. history.

  5. Investors cited interest rates and market volatility as their top concerns for infrastructure investing. With rising interest rates, appetite for infrastructure credit strategies is growing, specifically for institutions based in APAC. 

  6. Institutions are most likely to increase capital investments in Digital Infrastructure among the four major infrastructure verticals. On the opposite end of sectoral interest spectrum, demand for social infrastructure was the weakest out of the four major categories. 

  7. Appetite for Energy Transition is robust and expected to grow over the next several years. Roughly 40% of respondents indicated that they plan to increase allocations to renewable energy and storage, which was more than any other Energy subsegment. “New Energy Transition”, which encompasses asset types including green hydrogen and carbon capture, is the second most popular investment strategy at 39%. 

  8. Institutions continue to show preference for established managers, with appetite for first-time funds and emerging managers remaining limited. Approximately 71% of institutions surveyed indicated that they are either very unlikely or somewhat unlikely to invest in a first-time fund or with an emerging manager.



Participation Rate

US$6.8 Trillion
Total Assets

US$325 Billion
Infrastructure Assets

Institutions with AUM
in excess of US$50bn

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