European [EU] infrastructure assets are forecast to create trillion dollar offshore investment opportunities in the coming years according to a global asset management firm.
Access Capital Partners infrastructure partner Tomas Wegelius said the utilities, transport and mobility sectors would be the catalyst of EU’s asset growth due to increased urbanisation and its focus on flexible green solutions.
The EU market experienced “tailwinds from secular megatrends” thanks to decarbonisation, the energy transition, digitalisation, an increase in data, and Artificial Intelligence [AI], according to Wegelius.
“Europe provides a tremendous mid-market opportunity with market fragmentation creating compelling consolidation opportunities,” he said.
Wegelius predicted a flow-on benefit from mature regulatory and contractual frameworks, combined with the increasing integration of the EU market and reduction of unjustified monopolies, would lead to a boom in the EU economy.
He said the EU market was considered the most active and diversified globally home to corporates like Veolia, Vinci, Hochtief and Ferrovial.
“[Europe comprises] of more than 30 countries with different infrastructure frameworks and different investment needs across key sectors such as fibre networks, road networks, waste and water solutions,” he said.
Wegelius said the energy and utilities sector alone required an estimated €1 to €4 trillion as infrastructure spending by 2030 to achieve a commitment to carbon neutrality by 2050 and given the decarbonisation commitments of both governments and businesses he foresaw investment opportunities in this sector to remain attractive for the long-term.
He noted the EU market had witnessed strong growth of late due to upgrading existing systems and the development of new projects with high public deficits creating a need for more private financing of infrastructure assets.
Wegelius said that coupled with a healthy ecosystem of around 150 plus established general partners (GPs) alongside the emergence of smaller [and] newer GPs each year with more specialised niche strategies would play a part in the continent’s flourishing.
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