Real estate, infrastructure and private equity
- Increasing amounts of capital is being allocated to infrastructure largely due to its low correlation to other asset classes, stable cash-yield and inflation protection qualities.
- The attractiveness of infrastructure has been driven by its strong returns in a low-yielding environment.
- However, record fundraising has also led to an increasingly competitive market, fueling rising valuations and a focus on non-core strategies.
- Going into 2019, the global environment of high public valuations will be a cause for concern as private equity players fret over the availability of upside and the pressure it puts on private market valuations.