- Arcus closed its fourth European mid-market infrastructure fund at a 3bn hard cap, well above its 2bn target, on strong LP re-ups and global demand.
- Brookfield and Qatar-backed Qai formed a $20bn JV to build integrated AI infrastructure in Qatar and select international markets.
- BHP agreed to sell 49% of its Western Australia Iron Ore inland power network to GIP for $2bn while keeping 51% ownership and operating control, with closing targeted by FY2026.
- Gemcorp and Angolas FSDEA are launching a $500m Pan-African infrastructure fund via ADGM to back sectors such as energy, transport, water, food security and minerals.
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The infrastructure investment landscape at the close of 2025 reveals several strategic currents: LP confidence returning amid macro-uncertainty, sovereign wealth funds doubling down on technology and infrastructure, and resource companies monetising non-core infrastructure to unlock liquidity.
Fundraising strength in Europe: Arcus — Arcus Infrastructure Partners closed its fourth European Infrastructure Fund (AEIF4) at €3 billion hard cap, 50% above its €2 billion target. The fund raised over seven months, achieved more than an 85 percent re-up rate from existing LPs, and drew in over 50 institutions. Nearly half of capital came from outside Europe. The mid-market value-add strategy (digital, energy, logistics, industrial, transport) with ticket sizes of roughly €200-€250 million per deal signals both disciplined scaling and broad appeal among institutional investors.
AI infrastructure and sovereign tech ambition: Brookfield-Qai JV — Brookfield Asset Management and Qai (part of Qatar Investment Authority) have formed a $20 billion joint venture to invest in “fully integrated AI facilities,” with Qatar benefiting from government support to build up skills and supply chain. The JV is positioned as part of Brookfield’s broader AI infrastructure strategy targeting up to $100 billion globally. The initiative underscores the increasing strategic value of data, compute, and sovereign backing for AI infrastructure.
Resource sector monetisation: BHP/GIP power deal — BHP’s decision to sell a 49 percent stake in its inland power network supporting its Western Australia Iron Ore operations to GIP for $2 billion reflects the trend of resource companies extracting value from infrastructure assets. BHP retains operational control and ownership majority (51 percent). The deal includes a 25-year tariff agreement for power usage, and is expected to close by end of fiscal year 2026 pending regulatory approval, including from Australia’s Foreign Investment Review Board.
Emerging market infrastructure capital mobilisation: Gemcorp-FSDEA Pan-Africa Fund — The $500 million fund — with anchor commitments of $50 million each from FSDEA and Gemcorp (FSDEA’s commitment potentially up to $200 million) — is meant to channel Gulf, European, and global investor capital into Africa’s infrastructure gaps: energy, water, food security, critical minerals. Domiciled in ADGM, the fund reflects efforts to use Gulf-based financial hubs as capital bridges to Africa.
Strategic implications & risks —
- Institutional LPs appear more willing to commit in today’s uncertain macro environment, provided strategy clarity and strong track records, especially in mid-market infrastructure.
- Sovereign wealth funds and states are acting not just as capital providers but as strategic actors in tech infrastructure, seeking control or influence over compute, AI, energy assets.
- Resource companies like BHP show hybrid models to unlock capital without ceding control — over operational assets tied to power and energy.
- Emerging market and regional funds are increasingly structured from financial hubs in the Gulf, creating new “gateways” for capital into frontier infrastructure investments.
- Risks persist: regulatory approval (e.g. for cross-border infrastructure, foreign investment), tariff and off-taker risk in power deals, strategy drift with oversubscription, and execution risk in frontier or high-volatility environments.
Supporting Notes
- Arcus AEIF4 raised €3 billion hard cap after a seven-month fundraising, above its €2 billion target; re-up rate from existing LPs over 85 percent.
- AEIF4 expects 12-14 mid-market value-add infrastructure investments with equity tickets averaging €200-€250 million.
- Brookfield-Qai JV: $20 billion joint venture, part of Brookfield’s AI Infrastructure Fund, aiming to mobilise up to $100 billion globally; development of integrated AI facilities in Qatar and select international markets.
- BHP will retain a 51 percent controlling stake, while GIP funds $2 billion for 49 percent of the WAIO inland power network; tariff linked to power usage over 25 years; completion subject to regulatory approval by end of FY 2026.
- Gemcorp-FSDEA fund: target size $500 million; seed investments: $50 million from FSDEA (potential to $200 million), up to $50 million from Gemcorp; based in ADGM; targeting infrastructure in energy transition, water, food security, communications.