KEY FINDINGS OF THE 2026 INSTITUTIONAL INFRASTRUCTURE ALLOCATIONS MONITOR

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1. Target allocations to infrastructure rose for a third consecutive year, though growth moderated year-over-year as the asset class transitioned from early adoption to broader expansion.

2. For the first time over the past four years, over half of institutions are at or above target allocation, a milestone that reflects both successful portfolio buildout and constrained distributions (versus paid-in capital).

3. Infrastructure portfolios delivered strong returns for the third consecutive year, outperforming other alternative asset allocations.

4. Investor conviction reached a four-year high of 7.3 out of 10, rising despite a period of elevated geopolitical risk, increased regulatory uncertainty, and rate-driven pressure on lower-risk strategies.

5. Geopolitical risk remains a dominant consideration for the second consecutive year, while regulatory risk has emerged as a growing institutional concern.

6. Energy has overtaken digital as institutions' top sector priority, while interest in transportation strategies has increased year-over-year.

7. Europe has overtaken North America as the top geographic destination for incremental institutional capital, a notable shift in global infrastructure capital flows.

8. Core+ has overtaken Value-Add as institutions' most favored risk-return strategy, completing a shift that has unfolded over the past two years.

9. Institutions are expanding manager rosters while becoming less willing to back new entrants, reinforcing the dominance of established platforms.

10. ESG integration has become standard risk management for most institutions, though the transatlantic gap has widened.