North American investors prioritize resilience and domestic opportunity as inflation risks persist, find IFM Investors

North American institutional investors are increasingly focusing private market investment closer to home as inflation, geopolitical uncertainty and energy security concerns reshape portfolio priorities, according to new research from IFM Investors.

PM700, IFM Investors' annual survey of 700 senior investment professionals across 19 countries, found North American investors are more likely than their global peers to favour domestic private market opportunities, reflecting a growing focus on portfolio resilience and strategic investment themes.

More than two-thirds (67 per cent) of North American investors prefer private market investments in the United States and Canada, while 63 per cent identify inflation as one of the largest risks facing their portfolios compared with 55 per cent globally.  

The findings suggest investors are becoming increasingly selective about where and how they deploy capital as they balance the need for resilience with the pursuit of long-term growth opportunities.

PM700 also found many investors continue to question whether portfolios are sufficiently resilient for the current environment. Globally, only 21 per cent of investors believe their portfolios are designed to perform consistently across all economic conditions, while nine per cent describe their portfolios as vulnerable to economic shocks.

Energy security, infrastructure and domestic opportunity gain momentum

North American investors are showing stronger interest than global peers in sectors linked to economic and national resilience. 

• Twenty-eight per cent identify conventional energy as one of the top private market opportunities, compared with 22 per cent globally.  

• 25 per cent identify defense as a leading opportunity compared with 21 per cent globally.  

• Interest in defense rises to 32 per cent among North American insurers and 34 per cent among North American wealth managers. 

At the same time, investors continue to see opportunities associated with the energy transition. Sixty-five per cent of North American investors believe the transition will remain a long-term source of attractive private market investment opportunities.

The findings point to a broader focus from North American investors on the assets underpinning economic growth, energy security and technological transformation, creating significant opportunities across infrastructure and real assets. 

Infrastructure remains the preferred private markets asset class 

Infrastructure continues to be one of the strongest allocation stories globally. 

• Nearly two-thirds of investors (63 per cent) plan to increase infrastructure equity allocations over the next three to five years, making it the most attractive private market asset class globally, narrowly ahead of private equity (62 per cent).  

• A further 55 per cent plan to increase allocations to infrastructure debt. 

Investors said they were increasingly using infrastructure to gain exposure to long-term structural themes, including digitalisation, artificial intelligence, electrification, and energy security, while also enhancing portfolio resilience.

As demand for digital infrastructure and power generation continues to grow, investors increasingly see infrastructure as a critical link between long-term growth opportunities and portfolio resilience. 

Infrastructure moves into the mainstream of North American institutional portfolios  

Infrastructure is increasingly being recognised as a distinct asset class within institutional portfolios rather than simply being grouped alongside alternatives or real estate.

PM700 found infrastructure equity is now the most attractive private markets asset class globally, with 63 per cent of investors planning to increase allocations over the next three to five years, narrowly ahead of private equity at 62 per cent. A further 55 per cent intend to increase infrastructure debt allocations, highlighting growing conviction across the broader infrastructure asset class.

In North America, this shift is being driven by a combination of inflation, energy security, and domestic investment priorities. Nearly two-thirds of investors (63 per cent) identify inflation as a major portfolio risk, while 67 per cent prefer private market investments in the United States and Canada.

Investors increasingly see infrastructure as one of the few asset classes capable of delivering both resilience and growth. PM700 found 44 per cent value infrastructure for its exposure to long-term structural themes such as digitalisation and the energy transition, while 42 per cent cite stable long-term cashflows and defensive portfolio characteristics.

The growth opportunity is also expanding. Sixty-five per cent of North American investors continue to view the energy transition as a long-term investment opportunity, while investors are increasingly positioning portfolios around infrastructure linked to energy security, rising power demand, digitalisation, and artificial intelligence.

More than seven in ten investors globally (71 per cent) believe exposure to long-term megatrends such as artificial intelligence, digitalisation and the energy transition will be essential to achieving future return objectives. As those themes increasingly require investment in power systems, digital networks and essential infrastructure, investors are moving infrastructure from a specialist allocation towards a core component of portfolio construction. 

Investors seek greater flexibility and specialist expertise 

As private markets become increasingly complex, investors are placing greater importance on flexibility, implementation capability, and specialist expertise. 

PM700 found:  

• Thirty-nine per cent of North American investors say they want more customised investment solutions, compared with 33 per cent globally.  

• 44 per cent of investors believe limited expertise restricts their ability to scale investments in complex thematic areas. 

• 26 per cent express concerns about the depth of internal private markets expertise available within their organisations.

The findings suggest investors are increasingly looking for partners capable of providing specialist insights, implementation expertise and tailored investment solutions as they pursue more sophisticated private market strategies. 

Quotes attributable to Luba Nikulina, Chief Strategy Officer, IFM Investors:  

"North American investors are not retreating from private markets. What PM700 shows is that they are becoming more selective about where they take risks and they are increasingly focused on opportunities that can deliver both resilience and growth. 

"After several years of inflation, volatility and geopolitical uncertainty, investors are placing greater emphasis on portfolio durability. Increasingly, they are looking for investments that can help protect portfolios while maintaining exposure to long-term growth opportunities." 

Quotes attributable to Andrea Mody, Head of North America, Clients & Strategy, IFM Investors: 

"Infrastructure has established a meaningful allocation of its own within North American institutional portfolios, with allocations increasingly approaching or reaching double digits. Investors are recognising that many of the themes shaping the next decade, including artificial intelligence, energy security, digitalisation and economic competitiveness, are fundamentally infrastructure themes. 

“As a result, infrastructure is increasingly being viewed not simply as an alternative investment, but as a strategic asset class capable of delivering both resilience and long-term growth."

For media queries, please contact:   FTI Consulting [email protected] 

About IFM Investors    

IFM Investors is a global asset manager, founded and owned by pension funds, with capabilities in infrastructure equity and debt, private equity, private credit, real estate and listed equities. Our purpose is to invest, protect and grow the long-term retirement savings of working people.

With assets under management of approximately US$201.7bn as of 30 June 2026, we serve almost 900 institutional investors worldwide, operating from 16 offices across Australia, Europe, North America and Asia.   

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