Fundraising activity accelerated significantly, with more than $200 billion raised, an increase of approximately 50% from 2024 levels. Industry consolidation continued as capital concentrated among fewer managers, with the number of successful fund closures declining to 115 from 146 in the previous year.
The asset class generated solid returns, underpinned by resilient global economic growth of approximately 3.2% and a continued moderation in inflation, though levels remained above central bank targets.
ADIA’s Infrastructure Department continued to leverage its strong capital base and flexible investment mandate in 2025 to deliver stable returns through core positions aligned with long-term thematic trends. The Department utilised its global network and sector expertise to target investments benefiting from enduring secular drivers. A notable commitment was the $600 million investment in the Vantage APAC data centre platform, with assets across Japan, Malaysia, and Singapore, positioning the portfolio to capture value from the surging global demand for AI and cloud infrastructure.
Building on key themes from 2024, the Department responded to rising electricity demand in the United States by agreeing significant investments in a high-quality US utility company and a gas-fired power generation asset. It also pursued selective opportunities in private credit, stepping in as traditional lenders retreated amid tighter financing conditions. This included an investment of more than $200 million associated with operational data centres in the US alongside an established industry leader, as well as participation in secondary market transactions to provide liquidity.
Consistent with its disciplined portfolio management approach, the Department actively recycled capital into assets that more closely aligned with its target risk-return profile. It capitalised on buoyant equity markets to realise gains in listed infrastructure holdings and maintained a proactive stance in managing its direct investment portfolio.
During the year, the Department continued to strengthen its organisational capabilities to support effective investment execution. It also deepened industry relationships and explored collaborative opportunities in key high-growth segments.
Looking ahead to 2026, we expect infrastructure assets, with their essential nature and contracted or regulated cashflows, to offer stability amid volatile market movements. The Utilities and Energy sectors are better positioned to handle a possible upshift in inflation. Merger and acquisition activity, which gained momentum in the second half of 2025, is projected to accelerate further once geopolitical tensions ease, reinforcing a long-term positive outlook for the sector.
