Greg Smith

Investing in Infrastructure: Closing the Trillion-Dollar Gap

Andrew Clairaut, Kathy Hahn, Sudhir Hari, Scott Mackin, Greg Smith

A projected $90 trillion global infrastructure funding gap by 2030 persists due to a mismatch between long-term institutional mandates and the scarcity of bankable projects in both developed and emerging markets. While pension funds prioritize low-risk, regulated assets in OECD nations, private equity firms employ multilateral de-risking and hard currency strategies to target higher returns in developing regions where political and regulatory hurdles often stall deal execution. Bridging this deficit requires a shift from purely public funding to coordinated private mobilization, necessitating standardized concession frameworks and active stakeholder management to overcome sovereign default fears and political volatility.