Revitalizing US infrastructure: The pension capital advantage

Revitalizing US infrastructure: The pension capital advantage

The pension capital advantage is a policy blueprint by IFM Investors, a global asset manager founded and owned by profit-to-member pension funds. We believe pension capital investors – with their focus on investing to protect and grow the retirement savings of working people – could help bridge the US’ funding gap and enhance the resilience and productivity of US infrastructure assets.

US infrastructure cumulative investment needs 2024-33 ($B)

_{Source: ASCE, 2025}

As pioneers of the asset class, these investors have deep expertise in infrastructure. Australian pension funds have already invested $29 billion in infrastructure across the US, with total infrastructure equity investment projected to reach almost $67 billion by 2035¹.  

IFM Investors invests further in US infrastructure on behalf of more than 200 US pension fund clients, collectively managing the retirement savings of more than 20 million American workers and retirees.

There is a generational opportunity for US state and local governments to partner with investors of Australian and American pension capital – including through shared ownership and governance arrangements – to build the infrastructure that Americans will rely on into the future. Through public-private partnership (P3) and asset recycling models, state and local governments can potentially free up public resources to invest in new infrastructure priorities.

We set out four reform recommendations that we believe can help address the US infrastructure funding gap by expanding the pipeline of investable projects and mobilizing the investment of long-term and trusted pension capital.

1. Partner with investors of pension capital to embark on a program of asset recycling 
2. Provide incentives for states and municipalities to accelerate a program of asset recycling through a pilot Infrastructure Investment Incentive Grants (I3Gs) initiative
3. Reform regulations to allow investors to retain existing tax-exempt debt under public-private partnership (P3) arrangements 
4. Unlock additional capital for investment in US infrastructure by changing tax law to allow the use of new tax-exempt debt to acquire P3 concessions

Australian pension investments in US infrastructure

_{Map reflects select investments of IFM managed funds and of other Australian pension funds in US infrastructure assets as at January 2026, with input from Australian profit-to-member superannuation funds.} 

_{[1] Super Members Council modelling}