- Advertisement -
- Advertisement -

Related

Investing in the Infrastructure of Tomorrow with ELTIFs

By Raluca Jochmann – Allianz Global Investors: The ELTIF, or European Long-term Investment Fund, is currently the topic of the day. The European Union launched the ELTIF back in 2015 with the aim of giving private investors access to illiquid private market investments. However, while the take-up of this investment vehicle has been rather slow, the latest amendments to the law, dubbed ELTIF 2.0., introduced several simplifications as of January 2024. This is expected to lead to an increase in product supply. Scope estimates the ELTIF volume to reach between EUR 30bn and EUR 35bn by the end of 2026, with at least 20 new ELTIFS on the market within the next year.1

Let’s look at infrastructure investments as a megatrend. In many parts of Europe, large parts of the existing infrastructure are several decades old, the limitations of which we experience on a daily basis. According to a study by the Global Infrastructure Investor Association, only 38% of people worldwide were satisfied with their infrastructure in 2023.2 Whether in rail transport, on the road or in places with poor mobile network reception, large-scale infrastructure investments are badly needed not only in Europe, but also worldwide. According to the infrastructure monitor of GI Hub, global demand for infrastructure investment is estimated at USD 94 trillion by 2040.3

Whether in rail transport, on the road or in places with poor mobile network reception, large-scale infrastructure investments are badly needed not only in Europe, but also worldwide.

The development of new infrastructure is a key factor for the future functioning of society, both in economic and social terms. The focus of investment needs is on managing the energy transition, digitalization and demographic developments. Former President of the European Central Bank Draghi pointed out in a report for the European Commission that Europe needs additional spending of around EUR 800 million a year to remain competitive, socially stable, and to meet climate targets. The range of projects that need to be tackled includes the expansion of broadband networks, modernization of local public transport and upscaling of electricity grids for renewable energy. However, state budgets are under pressure. Private capital, including that raised by ELTIF funds, can play a decisive role in funding these important projects. Expertise and market access are required to navigate the complexity of investing in unlisted, or private, infrastructure, which is why this asset class was previously available mainly to institutional investors and very wealthy individuals. The new ELTIF 2.0 regulation opens this investment universe to a broader group of investors. Now, one can invest in an ELTIF starting at smaller amounts of money and make a long-term investment in private markets, which can be a valuable addition to a portfolio invested in liquid equities or bonds.

The development of new infrastructure is a key factor for the future functioning of society, both in economic and social terms. The focus of investment needs is on managing the energy transition, digitalization and demographic developments.

What are the benefits of unlisted infrastructure from an investor’s point of view? Infrastructure has successfully weathered some challenging macroeconomic times in recent years, from the pandemic to the energy crisis and rising inflation.4 Critical infrastructure in particular – such as utilities, water supply, mass transportation, telecommunications networks to name just a few – provide essential services to the public and can usually generate relatively stable returns due to their strong market position (with high barriers to entry in asset-heavy, highly regulated low-competition markets) and potential for regulated or long-term contractually secured revenues. Also, often-times infrastructure revenues are directly or indirectly linked to inflation, providing a useful portfolio protection against rising prices. These features make infrastructure an attractive potential addition and diversifier to an investor’s portfolio.

Critical infrastructure in particular – such as utilities, water supply, mass transportation, telecommunications networks to name just a few – provide essential services to the public and can usually generate relatively stable returns due to their strong market position and potential for regulated or long-term contractually secured revenues.

However, while return opportunities are attractive, one is well advised to also consider the specific characteristics and risks associated with private market investments. The illiquid nature of these investments means one should treat them as a long- term investment, not one that provides short-term liquidity. In addition to illiquidity, private markets carry specific other risks, which investors need to understand – by relying on appropriate advice and information – and properly consider in the light of their own portfolio objectives.

By investing in an ELTIF as a long-term addition and diversification to an otherwise liquid portfolio, private investors can make a threefold contribution – to a modern infrastructure, a sustainable society and their own wealth creation.

Find out more about Allianz Global Investors Infrastructure ELTIF by scanning the QR code.


Marketing communication. Infrastructure equity/debt investments are illiquid and designed for investors pursuing a long-term investment strategy only. Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors might not get back the full amount invested. Past performance does not predict future returns. ADM3594294


  1. https://www.scopeexplorer.com/files/get/?name=news.ReportFile/bytes/filename/mimetype/Scope_ELTIF_study_2024_final.pdf ↩︎
  2. https://giia.net/news/new-infrastructure-attitudes-study-flags-urgent-need-investment ↩︎
  3. https://www.gihub.org/infrastructure-monitor/ ↩︎
  4. https://www.gihub.org/infrastructure-monitor/ (Page 10) ↩︎

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Guest Contributor
Guest Contributor
This article was written by a third party as guest contribution. The content represents the views of the author(s). It was submitted and edited under HedgeNordic´s guidelines, but is not a product of HedgeNordic´s regular editorial team.”

Nordic Hedge Fund Industry Report

Riding Tech Trends in Long-Only and Market-Neutral Setting

One key ingredient for successful stock market investing is choosing the right hunting ground – targeting areas where companies are growing faster than the...

Liquid Alternatives: A New Frontier for Hedge Fund Strategies

While hedge funds have traditionally catered to institutional and high-net-worth investors, liquid alternatives have emerged as a growing segment that brings hedge fund-like strategies...

SEB’s Front-Row View on Trends Shaping the Nordic Hedge Fund Market

Like any other financial ecosystem, the Nordic hedge fund industry comprises a wide range of stakeholders — from fund managers and their investors to...

Nordic Fund Boutiques Building Strength Through Consolidation

The Nordic asset management industry is experiencing an accelerating wave of consolidation, particularly among boutique firms, including those with roots in the hedge fund...

The Growing Appeal of Dedicated Managed Accounts: Insights from CDPQ

Dedicated Managed Accounts (DMAs) are investment portfolios managed on behalf of a single allocator where the portfolio assets are owned and controlled by the...

Lynx Asset Management: A 25-Year Legacy of Innovation

Founded in 1999, Lynx Asset Management has not only navigated but actively attempted to safeguard investor portfolios through every major market crisis in recent...

Inside PPIM’s Quant-Backed Mortgage Bonds Strategy

Petersen & Partners Investment Management (Petersen & Partners) was founded in 2017 by Niels Erik Petersen with a clear ambition: to offer professional investment...

Nobel Foundation’s Hedge Funds: Evolving Past Fixed Income Replacement

As Chief Investment Officer of the Nobel Foundation, Ulrika Bergman is responsible for overseeing the foundation’s investment strategy to ensure the long-term financial sustainability...

Latest Articles

Peter Andersland Stays Cautious, Adds Convexity

Fund manager Peter Andersland had maintained a bearish economic outlook in recent quarters, and the tariff-related uncertainty and market volatility triggered by U.S. President...

Sissener Taps Mads Andreassen as Investment Manager

Norwegian fund boutique Sissener AS has strenghened its investment team with the appointment of Mads Andreassen as an investment manager, effective from the beginning...

From Trade Idea to Settlement: Tuning the Operational Engine to Unlock Performance Alpha

By Frank Glock, CRO, MAIA Technologies: Undoubtedly, performance alpha is seen as the universal standard for measuring the success of an investment firm. But...

How to Deal With Slippage

For any asset manager, as for managed futures traders, every fraction of a percent counts. Strategies are honed, backtested, and stress-tested across decades of...

From Selloff to Snapback: Policy Swings Define April for CTAs

In April 2025, the NHX CTA Index was down amid a major market selloff following U.S. President Donald Trump’s announcement of new tariffs, followed...

Sweden’s Hedge Fund Industry: Still a Nordic Powerhouse, But No Longer the Largest?

When strictly looking at the domicile of the management company, Sweden has been seen as home to Europe’s second-largest hedge fund hub by assets...
- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.