Market
Memos from Howard Marks: Is it a Bubble?
The World Is Changing
It’s Time to Consider Investing in Infrastructure
The Potential Benefits of Investing in Private Infrastructure
Infrastructure assets share several common characteristics: they provide essential services, they have high barriers to entry, and they are often backed by long-term, inflation-linked contracted or regulated revenues. We believe these distinctive features make infrastructure assets an appealing, all-weather investment choice.
Enhanced Risk/Return
Adding private infrastructure to a portfolio has historically increased overall return while decreasing risk.
Risk/Return
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Past performance is not indicative of future results. Diversification does not ensure a profit or protect against loss in a declining market. For the period January 1, 2010 through December 31, 2024. Performance shown are net of fees unless otherwise stated. Source: Bloomberg; Preqin. Equities refers to MSCI World Index; Fixed Income refers to the Bloomberg Global Aggregate Index; Private Infrastructure refers to the Preqin Infrastructure Index. See disclosures for full index definitions. The indexes are unmanaged and cannot be purchased directly by investors. Index performance is shown for illustrative purposes only and does not predict or depict the performance of any investment. There may be limitations to the data provided given limited coverage, reporting lag and different valuation methodologies. Further, private infrastructure funds that are included in the index choose to self-report. Thus, the index is not representative of the entire private infrastructure universe and may be skewed towards those funds that generally have higher performance. Over time, funds included and excluded based on performance, may result a “survivorship bias” that can result in a further misrepresentation of performance. Risk is defined as annualized standard deviation. Please see disclosures for additional information.
A Hedge Against Inflation
Infrastructure has proved to be an effective inflation hedge.
Average Quarterly Returns During Periods of Above-Average Inflation
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Past performance is not indicative of future results. For the period January 1, 2010 through December 31, 2024. Performance shown are net of fees unless otherwise stated. Source: Bloomberg; Preqin. Equities refers to MSCI World Index; Fixed Income refers to the Bloomberg Global Aggregate Index; Private Infrastructure refers to the Preqin Private Infrastructure Index. The indexes are unmanaged and cannot be purchased directly by investors. Index performance is shown for illustrative purposes only and does not predict or depict the performance of any investment. There may be limitations to the data provided given limited coverage, reporting lag and different valuation methodologies. Further, private infrastructure funds that are included in the index choose to self-report. Thus, the index is not representative of the entire private infrastructure universe and may be skewed towards those funds that generally have higher performance. Over time, funds included and excluded based on performance, may result a “survivorship bias” that can result in a further misrepresentation of performance. Inflation is defined as Seasonally Adjusted Core CPI. Periods of Above-Average Inflation are defined as quarters where Core CPI was above its historical average. During the time period analyzed, average Core CPI was 2.21% and there were 15 such quarters. Please see disclosures for additional information.
Mitigation of Downside Risk
Infrastructure has historically performed well during times of market uncertainty.
Average Quarterly Returns During 10 Worst Quarters for Equity Markets
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Past performance is not indicative of future results. For the period January 1, 2010 through December 31, 2024. Performance shown are net of fees unless otherwise stated. Source: Bloomberg; Preqin. Equities refers to MSCI World Index; Fixed Income refers to the Bloomberg Global Aggregate Index; Private Infrastructure refers to the Preqin Private Infrastructure Index. See disclosures for full index definitions. The indexes are unmanaged and cannot be purchased directly by investors. Index performance is shown for illustrative purposes only and does not predict or depict the performance of any investment. There may be limitations to the data provided given limited coverage, reporting lag and different valuation methodologies. Further, private infrastructure funds that are included in the index choose to self-report. Thus, the index is not representative of the entire private infrastructure universe and may be skewed towards those funds that generally have higher performance. Over time, funds included and excluded based on performance, may result a “survivorship bias” that can result in a further misrepresentation of performance. Please see disclosures for additional information.
Harnessing a Super-Cycle of Investment Opportunities
The Infrastructure Super-Cycle offers investors the prospect to capitalize on three multi-decade megatrends that are driving significant investment opportunities: digitalization, decarbonization and deglobalization.
Digitalization
Data is the world’s fastest-growing commodity
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$1 trillion+
investment opportunity
Source: Cisco, Markets & Markets
Decarbonization
The global shift to a net-zero economy is underway
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$150 trillion+
investment opportunity
Source: U.S. Energy Information Administration, IEA.org
Deglobalization
The world is rethinking its focus on manufacturing, supply chains and sources of energy
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$ 1 trillion+
investment opportunity
Source: Statista, OECD.org, U.S. Department of Transportation
Building the Backbone of AI
AI is everywhere – it is poised to become the most impactful general-purpose technology in history. Yet none of these breakthroughs will be possible without the buildout of capital-intensive physical infrastructure like data centers and renewable power to support the adoption of AI.
Brookfield estimates that total spending on AI-related infrastructure will exceed $1 trillion this decade and $7 trillion in the next 10 years.
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Source: Brookfield internal research.
The rapid adoption of Generative AI (GenAI) has accelerated data center demand at an unprecedented pace. AI data center capacity is expected to increase by more than a tenfold by 2034.
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Source: Brookfield internal research. There is no assurance that such events or projections will occur, and actual outcomes may be significantly different than those shown here.
Supplying reliable power has become a top priority, especially as large-scale AI models consume far more electricity than traditional IT.
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Source: IEA (2025), Data centre electricity consumption by region, Base Case, 2020-2030, IEA, Paris https://www.iea.org/data-and-statistics/charts/data-centre-electricity-consumption-by-region-base-case-2020-2030, Licence: CC BY 4.0. There is no assurance that such events or projections will occur, and actual outcomes may be significantly different than those shown here.
" AI is becoming commercial and functional in a greater number of use cases. More efficiency in AI is going to drive more demand for AI. We see very little chance of overbuilding at this point. "
— Connor Teskey, President of Brookfield Asset Management
Powering the AI Revolution
Brookfield invests in the critical AI-related infrastructure that will power the AI age.
The Brookfield Infrastructure Advantage
Brookfield’s roots in infrastructure date back to 1899. Today, the Firm is one of the world’s largest infrastructure investors, owners and operators.
1899
The São Paulo Tramway, Light & Power Co. is founded by Canadian investors, introducing the first electric streetcars to São Paulo and Rio de Janeiro.
1912
Consolidating the São Paulo and Rio businesses, Brazilian Traction, Light and Power Co. (“The Light”) goes public on the Toronto stock exchange.
1940s
The Light employs more than 50,000 people and provides two-thirds of Brazil’s electricity.
1969
The Light rebrands as Brascan - a blending of “Brasil” and “Canada.”
1999
Brookfield begins expanding its renewables footprint. By 2017, Brookfield will be one of the world’s largest pure-play renewable power operators.
2001
Brascan closes its initial fund in 2001, setting the stage for the Firm’s transition to an asset manager.
2005
Brascan is renamed Brookfield Asset Management in 2005.
2008
Brookfield takes its infrastructure business public as Brookfield Infrastructure Partners (NYSE: BIP).
2009
Brookfield expands its infrastructure reach via the acquisition of Babcock & Brown out of bankruptcy, acquiring a $10 billion global portfolio of data, midstream, transport and utility assets.
2010
Brookfield Renewable Partners (TSX: BEP) goes public.
2023
Brookfield closes on the world’s largest closed-end private infrastructure fund, and the largest fund ever raised by Brookfield.
2024
Brookfield and Microsoft sign agreement to deliver over 10.5 GW of new renewable power capacity globally.
2025
Brookfield and Google sign hydro framework agreement to deliver up to 3,000 MW of homegrown energy in the United States.
2025
United States Government, Brookfield and Cameco enters into a strategic partnership to accelerate the deployment of nuclear power.
Our Infrastructure Investments Around the World
From first- and last-mile rail connections, to data centers across Europe and the U.S., to connecting U.K. homes to the utility grid, Brookfield’s critical infrastructure assets span five continents.
Explore some of our assets around the world on the map.
Inter Pipeline
Energy infrastructure network that transports, processes and stores commodities, delivering sources of supply to demand centers across North America.
GD Towers
Telecom towers in key European markets, providing nationwide 5G coverage in Germany and Austria.
AusNet
Electricity transmission network distributing gas and electricity to 6.6 million people in Australia.
Isagen
Hydroelectric facilities that supply ~20% of Colombia’s electricity.
Compass Datacenters
Compass delivers large-scale, sustainable, and customizable data center campuses for hyper-scalers and cloud-services providers across the U.S., Canada, Israel, and Italy.
NTS
Natural gas pipelines that provide supply to key markets in Brazil, including Rio de Janeiro and São Paulo; the pipelines fulfill more than 50% of Brazil’s natural gas demand.
Intel
A first-of-its-kind partnership with Intel to jointly fund the construction of a $30 billion semiconductor fabrication facility.
Data4
Platform of stabilized data center infrastructure assets located across Europe, operated by Data4 under a long-term management agreement.
Neoen
A leading, fully integrated pure-play renewable development platform present in Europe, Australia, and the Nordics.
Our Infrastructure Investments Around the World
From first- and last-mile rail connections, to data centers across Europe and the U.S., to connecting U.K. homes to the utility grid, Brookfield’s critical infrastructure assets span five continents.
Explore some of our assets around the world on the map.
Inter Pipeline
Energy infrastructure network that transports, processes and stores commodities, delivering sources of supply to demand centers across North America.
GD Towers
Telecom towers in key European markets, providing nationwide 5G coverage in Germany and Austria.
AusNet
Electricity transmission network distributing gas and electricity to 6.6 million people in Australia.
Isagen
Hydroelectric facilities that supply ~20% of Colombia’s electricity.
Compass Datacenters
Compass delivers large-scale, sustainable, and customizable data center campuses for hyper-scalers and cloud-services providers across the U.S., Canada, Israel, and Italy.
NTS
Natural gas pipelines that provide supply to key markets in Brazil, including Rio de Janeiro and São Paulo; the pipelines fulfill more than 50% of Brazil’s natural gas demand.
Intel
A first-of-its-kind partnership with Intel to jointly fund the construction of a $30 billion semiconductor fabrication facility.
Data4
Platform of stabilized data center infrastructure assets located across Europe, operated by Data4 under a long-term management agreement.
Neoen
A leading, fully integrated pure-play renewable development platform present in Europe, Australia, and the Nordics.
Important Disclosures
All investing involves risk. The value of an investment will fluctuate over time, and an investor may gain or lose money, or the entire investment. Past performance is no guarantee of future results.
Infrastructure companies may be subject to a variety of factors that may adversely affect their business, including high interest costs, high leverage, regulation costs, economic slowdown, surplus capacity, increased competition, lack of fuel availability, and energy conservation policies.
Assets shown are for illustrative purposes only. There is no assurance that similar investments or results will occur in the future.
Information and views are subject to change without notice. Some of the information provided herein has been prepared based on Brookfield’s internal research, and certain information is based on various assumptions made by Brookfield, any of which may prove to be incorrect. Brookfield may not have verified (and disclaims any obligation to verify) the accuracy or completeness of any information included herein, including information that has been provided by third parties, and you cannot rely on Brookfield as having verified any of the information.
Index Definitions
The Bloomberg Global Aggregate Index is a market capitalization-weighted index, comprising globally traded investment grade bonds. The index includes government securities, mortgage backed securities, asset-backed securities and corporate securities to simulate the universe of bonds in the market. The maturities of the bonds in the index are more than one year..
The Preqin Private Infrastructure Index captures the average returns earned by investors in their private infrastructure portfolios, based on the actual amount of money invested in private capital partnerships.
Core Consumer Price Index (CPI) is a measure of the average change in prices over time in a fixed market basket of goods and services, excluding food and energy components.
The MSCI World Index captures large and mid cap representation across 23 Developed Markets. The index covers approximately 85% of the free float-adjusted market capitalization in each country.
Investment Terms
Standard deviation is a commonly-used measure of the risk/reward profile of the risk/reward profile of traditional portfolios and broad market indices. As applied to alternative investment funds and strategies, however, these statistics may materially understate the true risk profile of an alternative investment because alternative investment funds are subject to a loss of principal which is not reflected in the standard deviation of returns, the only measure of risk used in calculating standard deviation.