Outlook 2025: Claus Fintzen (AllianzGI)
By Claus Fintzen, Chief Investment Officer, Infrastructure Debt, Allianz Global Investors
What are the main opportunities and threats for 2025?
‘The need for infrastructure investment is huge – and pressing. To stay competitive, the EU needs to invest € 750-800 billion a year in areas such as digital transformation, the energy transition and defence, according to a recent report by Mario Draghi, former ECB President.
Many new governments have come to power and delivering much-needed infrastructure projects will be on their policy agenda. However, with budget deficits growing, they have limited funding available. Investments won’t happen without private capital, opening a window of opportunity for investors with a long-term investment horizon.
We expect more transactions and fundClaus Fintzen Chief Investment Officer, Infrastructure Debt, Allianz Global Investors raising in 2025 as investors feel comfortable with recent performance delivered in a more volatile environment. And volatility – also against the backdrop of geopolitical risks – will remain.
Many huge projects, such as the modernisation of roads, public transport, the buildout of data centres, social infrastructure and those related to the energy transition, require financing. All these projects need investors with a proven track record that should lead to new and attractive investment opportunities in a rebalancing market environment.
Investing in infrastructure in 2025 means investing in the future drivers of economic and financial performance. For investors, this can present an opportunity to achieve stable returns and portfolio diversification.’
The need for infrastructure investment is huge – and pressing.