This is Volume II of the I Squared Infrastructure Explained series, which explores how we define, allocate to, and invest in infrastructure.

Private markets exposure can provide portfolio diversification, but not all asset classes serve the same purpose. For investors allocating to private markets, infrastructure can offer a differentiated combination of durable demand, visible cash flows, inflation sensitivity, and hard-asset backing.

Key Investment Characteristics

Infrastructure in Context

Each sector within private markets can serve a distinct role in a portfolio. Infrastructure can serve a distinctive role within private markets: more growth-oriented than private credit, more income- and resilience-oriented than traditional private equity, and different from real estate because its value is often tied to essential services, not just property.

The Takeaway for Investors

Infrastructure offers investors the potential to capture compelling returns alongside these attractive characteristics.

Resiliency with Compelling Performance: 10-Year Annualized Return¹

While other private market asset classes may offer growth, income, or appreciation individually, infrastructure can bring elements of all three, backed by real assets that may support resilience across economic cycles.

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DISCLOSURES

¹Source: Preqin, Preqin Indices, Quarterly Indices, Annualized Performance as of December 2025. Returns shown are 10-year annualized returns for the relevant Preqin asset class indices. Private Equity reflects Private Equity excl. VC; Private Credit reflects Private Debt.

This material is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security. The views expressed reflect the opinions of the author as of the date of publication and are subject to change without notice. Forward-looking statements involve known and unknown risks and uncertainties; actual outcomes may differ materially from those expressed or implied. Investing involves risk; loss of principal is possible. Specific investment advice references provided herein are for illustrative purposes only and are not necessarily representative of investments that will be made in the future. Past performance is not indicative of future results.

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