The Infrastructure Pulse Survey for Q4 2023, compiled by Alvarez & Marsal in collaboration with the Global Infrastructure Investor Association, is a survey designed to provide a regular temperature check of sentiment in the infrastructure investment sector and emerging trends across Europe and the Americas.
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Key Findings Include:
- Sentiment around equity fundraising fell sharply in Europe, continuing a trend seen since Q2 2023. There is now a clear divergence between Europe and the US, where sentiment increased in Q4 2023 and is now in positive territory. The US continues to be a focus market for infrastructure investors due to significant infrastructure investment needs and further rollouts of Inflation Reduction Act programs.
- Despite the further monetary tightening seen over the last 6 months, sentiment around infra debt markets edged higher in both the US and Europe and is now neutral overall, although this masks a variation in views between different infra sectors and sub-sectors. Broadly, core infra assets – in particular those with inflation-protected cash flows – remain positive about debt availability, but sentiment becomes negative for certain core plus and non-core asset specific sub-sectors – notably altnet fibre (particularly in theUK) – that are now very difficult to debt finance.
- The UK’s attractiveness for infra investors fell sharply and is now seen as negative. This is attributed to ongoing concerns around political stability (with an election looming in 2024), the absence of a clear strategic direction for certain sub-sectors (e.g water and rail) and quality of economic regulation, coupled with the fiscal stimulus for investing in other countries.
- Germany now rates as the most attractive country in Europe for infra investment, while the US rating is lower than Q2 2023 but still strongly attractive for investment. South American and Eastern European market outlook continue to be negative.
For more information on the survey results, insights, or questions about the infrastructure reports and recent trends, please contact our experts.
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