5th Edition of the Bird & Bird and France Invest Infrastructure Funds Activity Barometer: A Confirmed Rebound for French Funds
Written By
Partner
France
As the partner in charge of our Finance group in France and co-managing partner of our Casablanca office, I advise investment funds, banks, sponsors and public entities on the structuring, award and financing of projects in the energy, infrastructure and automotive sectors in Europe and Africa.
Partner
France
I am a partner in our International Corporate Group based in Paris. With vast experience in a wide range of transactions, I specialise in mergers and acquisitions as well as private equity in France and Africa.
Counsel
France
In my role as Counsel, I advise borrowers and their shareholders, commercial lenders, DFIs, funds and public bodies, as well as industrial companies in their French or international financing transactions.
International law firm Bird & Bird, in partnership with France Invest, publishes the 5th edition of its annual barometer on infrastructure funds activity led by its Infrastructure group. After a challenging year in 2023, 2024 marks a turning point, featuring a marked increase in fundraising, sustained investments, and the assertion of French leadership in Europe.
A Renewed Dynamic Despite Uncertainties
In a still-uncertain environment marked by geopolitical tensions and macroeconomic pressures, infrastructure funds have once again succeeded in attracting investors, even as macroeconomic pressures intensified. Although the total capital raised has not surpassed the historic 2021 level of €17.2 billion raised by infrastructure funds, 2024 breaks away from the continuous decline since 2021 in fundraising volumes. This year, 2024, thus represents a welcome return to positive momentum and growth in the amounts raised.
In 2024, €13.7 billion was raised by infrastructure funds, a 16% increase compared to 2023. This is a significant amount, surpassing the totals for 2018 through 2020 as well as 2023. The second half of 2024 proved decisive, accounting for €9.8 billion in funds raised, an increase of over 150% compared to the first half.
Sustained Investment in Ambitious Projects
Infrastructure investments rose slightly compared to the previous year, with 189 projects funded in 2024, up from 177 last year, representing a total of about €11 billion. Since 2018, never have so many infrastructure projects attracted investment. Renewable energy continues to dominate the landscape, accounting for €4.3 billion across 120 projects, followed by transport (€3.3 billion) and social infrastructure (€1.4 billion). The telecoms/data centre sector, while lower in terms of amounts invested, is seen as offering the highest expected IRR.
Following the trend in 2023, the gap between greenfield and brownfield investments continues to widen in favour of brownfield. The increase in brownfield investment is notable at +21%, even though the number of funded projects in this segment remained stable. According to surveyed infrastructure funds, their attractiveness internationally is confirmed: 80% of the funds raised in 2024 came from foreign investors, a stable share compared to the annual average between 2018 and 2023 (74%) and to 2023 (80%).
As for favoured investment strategies among respondents, Value-Add ranks first with over 60% of those surveyed indicating a preference for this strategy. It is followed by Core Plus, Sector-Focused, and Core strategies, each chosen (in near-equal proportions) by the investment funds surveyed. Investors tend to prefer strategies that are riskier and less expensive than Core, allowing them to benefit from more attractive overall returns.
2025 Outlook: Continuity and Consolidation
This asset class reaffirms its appeal through stability, long-term returns, and the strong visibility of investor revenues. Despite a macroeconomic environment that will undoubtedly remain uncertain in 2025, 50% of surveyed investors foresee growth in their activity—compared to just 43% in the previous edition. In 2025, the private equity industry appears poised to play a major role in strengthening sovereignty, notably in defence and European reindustrialization. One example is the financing of a European AI sector: without massive infrastructure investment, Europe would remain dependent on China or the United States.
For some, Europe may appear as a credible alternative investment destination compared to the United States, which is currently subject to increasingly uncertain and disorganized policies. In the first quarter of 2025, $63.93 billion was raised across 22 funds, a remarkable 66.65% increase compared to the same period in 2024. Investors in infrastructure will be closely watching 2025.
About the Bird & Bird Infrastructure Funds Activity Barometer
Launched in 2021, the Bird & Bird Barometer on infrastructure funds activity provides a snapshot of this asset class at a given moment. Now in its fifth edition, it draws on data collected via a survey conducted in partnership with CFNews INFRA, as well as interviews with infrastructure fund managers with between €300 million and €15 billion under management. It also benefits from collaboration with France Invest, the investors-for-growth association, which relies on figures reported by France Invest members via a European data-collection platform (European Data Cooperative), audited by Grant Thornton.
Access the complete edition of the 2025 Barometer here.
