As government budgets tighten, private capital is stepping in to capture an expanding array of mid-market infrastructure opportunities worldwide, says I Squared Capital’s Mohamed El Gazzar.

As public budgets tighten globally, private capital is playing an increasingly important role in funding essential infrastructure. The mid-market is emerging as a particularly attractive segment, offering a balance of scale, accessibility and value creation potential.

Compared with large-cap assets, mid-market opportunities typically benefit from more attractive entry valuations, less competition and a broader, more frequent pipeline. Crucially, they allow investors to actively create value through operational improvements and platform-building strategies.

Key opportunities are being driven by structural themes including digitalization, energy transition and supply chain resilience. Regions such as Asia continue to offer strong growth dynamics, particularly across transport and renewable energy infrastructure.

As competition increases, success in the mid-market will depend on execution, sector expertise and the ability to scale businesses over time.

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