Thought Leadership in Infrastructure and Real Assets

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U.S. Secretary of Energy Chris Wright signed his first order on February 5, 2025, titled “Unleashing the Golden Era of American Energy Dominance.” It’s a hefty directive, pushing the Department of Energy to fast-track efforts to ramp up domestic energy production and sharpen America’s edge on the global stage.   

The focus is to produce more energy through innovation — think next-gen nuclear, geothermal, and fossil fuel technology — while reinforcing infrastructure like the grid and LNG export terminals. Wright is also gunning for deregulation, aiming to slash red tape that’s choked projects, from permitting delays to appliance efficiency rules, all to get energy flowing faster and cheaper.

 The infrastructure secondaries market has undergone a transformation in recent years, serving as a portfolio management instrument for both fund investors and general partners, facilitating a consistent flow of assets for sale while managing aging portfolios. Industry analysts anticipate an increase in their utilization as investors seek efficient methods for exposure. 

Secondaries have emerged as highly coveted assets during market volatility, offering early exit options and diversity for portfolios.

 The environmental and energy policies anticipated under President-elect Donald Trump will substantially differ from those of the Biden-Harris administration. The energy sector, for example, rose sharply the day following Trump’s victory, with the Energy Select Sector SPDR Fund (XLE) rising over 4% on optimism about fossil fuel investments under Trump’s expected pro-oil and gas policies. In contrast, shares of renewable energy businesses declined dramatically across the board.  

In the face of economic instability and changing market conditions, investors are becoming more inclined to explore alternative assets as part of their allocation strategy.

Most investors construct their portfolios by allocating their investments to traditional assets, such as equities, fixed-income securities, and liquid funds. These can offer both growth and a degree of diversification. Nevertheless, certain investors pursue diversification that extends beyond these traditional asset categories.