Private Credit

Infra Debt’s Paradigm Shift

July 2026 – 5 min read

Infrastructure debt is entering a new phase of growth, shaped by structural mega-trends and evolving energy needs, as discussed in this Private Debt Investor Q&A with Pieter Welman.

Q What excites you most about the infrastructure debt opportunity set today?

We think it is an exciting time for the asset class, which is poised for growth in the coming years for two reasons: first, the opportunity set is vast and changing fast; and secondly, the asset class has matured and we see institutional investors from around the world increasing allocations with different types of capital looking at a variety of products to invest in. For an asset manager, these two drivers make it an exciting time to work in the industry.

Multiple mega-trends are converging today to fundamentally reshape the infrastructure landscape and create a broad pipeline for capital deployment. For example, long-term demographic shifts towards urbanisation are creating opportunities in transportation and social infrastructure, while rapid technological evolutions such as the acceleration of AI are creating a huge opportunity set for infrastructure investors and lenders around everything from fibre to data centres.

Then there is the energy required to facilitate all these developments. Substantial investment will be required not only in the production of that energy, but also in its transmission and how it is consumed.

Q How much appetite do you see from investors for meeting these challenges, and how has that changed over the years?

I don’t think there has ever been as much appetite from institutional debt investors, with allocations seeming to increase every year. The asset class is considered defensive, and its well-versed virtues, that of inflation-linked real assets with low defaults and high recoveries, have generally been shown to be true, which gives confidence to investors to increase allocations. As the asset class matures further, we expect this increase in appetite to continue and eventually become a core allocation to portfolios.

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Headshot of Pieter Welman smiling at the camera.

Pieter Welman

Head of Global Infrastructure Debt

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