Nick Cleary, senior partner at Vantage Infrastructure, on infrastructure lending trends

In this exclusive fireside chat, Nick Cleary, Senior Partner at Vantage Infrastructure, shares his expertise on the evolving landscape of infrastructure credit investments. With over a decade of experience in the industry, Cleary provides valuable insights into the growth of infrastructure credit, its diversification, and the opportunities it presents for investors.

Key Takeaways:

Growth of Infrastructure Credit: Infrastructure credit has grown from $400 billion in annual debt issuance a decade ago to over $1 trillion today, with a significant increase in diversification across sectors, including social, environmental, and renewable energy.

Diversification: The market has expanded beyond traditional transport and utilities to include sectors like waste and water management, residential solar, and data and telecommunications.

Energy Transition: The next wave of growth is expected to come from energy transition investments, with a projected $2 trillion investment in 2023, growing to $4-5 trillion by the end of the decade.

US Market: The US infrastructure market is at an earlier stage of development compared to Europe, but is growing rapidly, with a focus on private infrastructure development and attracting new capital.

Election Impact: The outcome of the US election is unlikely to significantly impact the trajectory of infrastructure investment, as the need to attract capital and invest in infrastructure is greater than political considerations.

Investor Concerns: The primary concern for investors is finding good value in an uncertain environment, which infrastructure credit addresses through its low correlation with other asset classes, resilience, and consistent cash yield.

Key timestamps:

00:09: Introduction
01:35: Evolution of Infrastructure Credit
03:10: Key Pillars of Success
05:55: Growth of Infrastructure
09:37: Deal Review and Assessment
11:07: Deal Origination
12:58: Relationships with Intermediaries and Borrowers
14:54: Impact of US Election on Market