Significant investment is needed to keep pace with projected growth, with energy and digital representing the largest opportunity sets across developing and growing economies.
Franklin Templeton believes the growth and opportunity in Private Infrastructure is through the global trends of Energy demand, Digitalization & Growing Economies; the EDGE.
Mix of energy production shifting to renewables to help meet demand from AI and broader electrification.
Source: Bloomberg NEF. There is no assurance that any projection, estimate or forecast will be realized.
AI, cloud computing, and high speed internet among drivers for more, better, faster compute and connectivity.
The biggest infrastructure needs are in emerging markets, however, these are the most underserved by Private Capital.
Source: McKinsey Global Institute: Bridging Global Infrastructure Gaps; IHS Global Insight; ITF; GWI; National Statistics.
Private Infrastructure provides the following potential benefits to your portfolios:
Real assets with contractual revenues often linked to inflation, have offered mitigation against rising prices
Average quarterly returns across 10 highest quarters of inflation (%)
As of June 30, 2025. Analysis by Franklin Templeton Financial Markets.
Sources: Preqin, MSCI, Bloomberg. Period beginning January 1, 2007. Equities: MSCI World. Bonds: Bloomberg Global Aggregate Index. Real Estate: Preqin Global Private Real Estate Index. Private Infrastructure: Preqin Global Private Infrastructure Index. Private Equity: Preqin Global Private Equity Excl. VC Index. Correlation metrics include adjustments for autocorrelations.
Investment Risk:
All investments involve risks, including possible loss of principal. Diversification does not guarantee a profit or protect against a loss.
Infrastructure Investments: An investment in infrastructure projects can be exposed to numerous risks that may not offer recourse to the project sponsor and ultimately investors. For example, delays in obtaining necessary permits or a shift in political or public sentiment could hinder progress or cause a project to terminate. Other risks that can impact an infrastructure investment include, but are not limited to: construction delays, environmental concerns, contract or labor disputes, or financial/default risks from a deterioration in a sponsor’s credit. Additionally, the securities tied to such projects may be private in nature which increases the illiquid nature of such investment and reduce visibility into information about the investment. Private securities would not be listed on a public exchange, and no secondary market would be expected to develop.
Important Information
Indexes are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.
The MSCI World Index captures large and mid cap representation across Developed Markets countries. The index covers approximately 85% of the free float-adjusted market capitalization in each country.
Preqin Private Capital Indices encompass a range of closed-end private capital funds, including both commingled and separately managed accounts tracked by the Preqin team. Private capital includes the following asset classes: private equity, venture capital, private debt, real estate, infrastructure, and natural resources.
The Preqin Global Private Infrastructure Index measures the performance of Infrastructure core, infrastructure core-plus, infrastructure debt, infrastructure fund of funds, infrastructure opportunistic, infrastructure secondaries, and infrastructure value added infrastructure strategies.
The Preqin Global Private Equity - Excl VC Index measures the performance of Balanced, buyout, co-investment, co-investment, multi-manager, direct secondaries, Fund of funds (PE), growth, secondaries (PE), and turnaround private equity strategies.
The Preqin Global Private Real Estate Index measures the performance of Real estate co-investment, real estate core, real estate core-plus, real estate debt, real estate distressed, real estate fund of funds, real estate opportunistic, real estate secondaries, and real estate value added strategies.
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