Innovation through imitation

Innovation in infrastructure investment models – particularly co-investments – is helping institutional investors close allocation gaps in this fast-growing asset class.

As infrastructure continues to expand and attract higher target allocations, many investors remain under allocated due to the slower capital deployment typical of traditional drawdown fund models. Co-investments and co-investment funds are increasingly used to accelerate deployment, find fee efficiencies and allow investors to get closer to underlying assets.

Higher interest rates have also reshaped the landscape, reducing leverage in infrastructure transactions and increasing demand for equity capital – further reinforcing the role of co-investments in financing larger deals.

Beyond faster deployment, co-investments can improve net return outcomes through lower or negotiated fees and provide access to proprietary deal flow via strong GP–LP relationships. At the same time, they provide a more hands-on approach, allowing asset-level selection alongside institutional-grade due diligence.

For investors, co-investments offer both strategic and practical advantages: they support the development of in-house expertise, increase transparency, and shorten the learning curve toward direct investing. When combined with co-investment funds, they can also enable broader diversification across assets, sectors, and geographies.

Overall, a flexible, multi-model approach – leveraging co-investments alongside traditional fund structures – is becoming key for investors looking to scale infrastructure exposure efficiently while maintaining strong risk discipline and return potential.