Europe’s infrastructure ambitions now depend less on public budgets and more on private capital. Invest Europe’s latest report shows institutional investors stepping in at scale as funding needs outstrip state capacity.

Between 2020 and H1 2025, European infrastructure funds raised approximately $290bn, underscoring the asset class’s ability to attract capital even through a period of rising interest rates and macro uncertainty. Fundraising reached about $45bn in H1 2025 alone, close to the annual average of the previous five years, signalling renewed momentum after a slowdown in 2023. 

Capital has increasingly flowed to large-scale vehicles. Funds larger than $2.2bn accounted for roughly 62% of total capital raised over the period, highlighting investor preference for scale, diversification, and deployment certainty. France and Benelux emerged as the largest fundraising region, raising about $100bn, followed by the Nordics with roughly $78bn. 

Investment activity remained resilient. From 2020 to H1 2025, infrastructure funds and co-investors deployed around $183bn across 1,039 European companies and projects. Annual investment levels in H1 2025 were broadly in line with recent averages, despite higher financing costs and tighter credit conditions. 

Brownfield assets continued to dominate deployment, representing about 83% of invested capital, reflecting investor focus on operational assets with predictable cash flows. However, greenfield investment has grown steadily, accounting for roughly 17% of total deployment and recording average annual growth of around 16% since 2020. 

Sector allocation remains highly concentrated. Renewable energy, telecommunications, and transport accounted for roughly 81% of total capital invested over the period. Renewable energy alone saw more than 100 companies or projects backed in H1 2025, reinforcing private capital’s central role in Europe’s energy transition. 

Geographically, Southern Europe attracted the largest share of investment, with approximately $53bn deployed, followed by the UK and Ireland at about $51bn, and France and Benelux at roughly $36bn. Cross-border investment within Europe totalled around $102bn, exceeding domestic investment volumes and highlighting the increasingly integrated nature of the European infrastructure market. 

Divestments remain structurally lower than investments. From 2020 to H1 2025, about $18bn was divested across 344 companies or projects. Invest Europe stresses that this reflects the long-duration nature of infrastructure funds, which often exceed 20-year lifecycles, and the importance of yield and income as return drivers rather than frequent exits. 

The report concludes that Europe is entering a new phase for infrastructure investment. With estimates pointing to an annual funding gap equivalent to roughly $880bn, public budgets alone are insufficient. As a result, private capital is essential to financing Europe’s transport networks, energy systems, digital infrastructure, and social assets.

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