Webcast Replay - No Limit on Opportunity: Why Mid-Market Core+ Infrastructure Thrives in Open-End Funds

Mid-market infrastructure occupies a distinct position in the private infrastructure landscape — defined by a deep and growing opportunity set, a return premium over large-cap peers, and structural characteristics that make it particularly well suited to long-term, open-end strategies. In an environment marked by persistent macro uncertainty and uneven exit activity across private markets, the case for mid-market infrastructure has become more, not less, compelling.

On June 25, CBRE Investment Management hosted a live webcast exploring these themes, drawing on the firm's recently published white paper. The session was moderated by Nick Dempsey, Co-Head of Infrastructure and co-author of the paper. Speakers included:

• Tania Tsoneva, Managing Director and Head of Infrastructure Research
• Rob Shaw, Managing Director, Private Infrastructure
• Nick Riordan, Senior Director, Client Solutions

Below we summarize the key takeaways.

A deep, diversified and resilient opportunity set

Infrastructure transactions between $100 million and $1 billion represent an investable universe that is substantially larger and more globally diversified than many investors assume — many times more numerous than large-cap deals, spanning the U.S., UK, continental Europe and beyond. Mid-market deal flow has also demonstrated greater resilience through periods of dislocation: when mega-deal volumes fell sharply in 2023 and 2024, mid-market activity was less affected and rebounded more quickly. In a market where geopolitical disruption and slow exits continue to weigh on sentiment, that consistency is a meaningful structural advantage.

Higher returns, comparable risk

Index data covering the 100 largest mid-market infrastructure companies shows annualized gross returns that have historically exceeded large core infrastructure by approximately 500 basis points, with a more typical alpha range of 200 to 400 basis points. Importantly, volatility, maximum drawdown and risk-adjusted return metrics are broadly comparable to large core infrastructure — meaning mid-market exposure can increase portfolio returns while maintaining the risk profile investors expect from the asset class.

Value creation across the full investment lifecycle

The mid-market return premium reflects active value creation at each stage of ownership. Lower competition on entry enables bilateral transactions and disciplined underwriting. During the holding period, teams work with portfolio companies to strengthen governance, drive operational improvements and build scale. On exit, successfully scaled assets attract a broader buyer universe — often at a multiple premium of around three turns of EBITDA relative to mid-market entry multiples.

Accelerate: building a platform from the ground up

Accelerate, CBRE Investment Management's infrastructure site aggregation business, acquires land beneath renewables, digital and electrification infrastructure projects under long-term contracts with investment-grade counterparties and built-in inflation escalation. Built rather than bought, the platform has grown to over 450 sites across 47 U.S. states, completed two asset-backed securitizations and returned capital to investors through dividend recapitalization. The business is now approaching large-cap scale, positioning it to realize the graduation premium at the heart of the mid-market thesis.

CitySwitch: the structural advantage of long-term ownership

CitySwitch, CBRE Investment Management's build-to-suit tower owner-operator serving major U.S. telecoms, illustrates how open-end fund structure creates decision-making advantages that closed-end vehicles cannot replicate. When telco capex slowed in 2023 and 2024, the team was able to pause development rather than deploy capital at inopportune valuations. As 5G densification spending recovered, CitySwitch exceeded its original deployment targets, completed a debt financing 4.4 times oversubscribed at a 165 basis point spread and returned capital through dividend recapitalization — outcomes made possible by patient, long-term ownership.

Why open-end funds and mid-market infrastructure are well matched

Management teams at mid-market companies prefer open-end structures because they allow focus on long-term value creation rather than engineered exits — giving open-end managers a genuine sourcing advantage. For investors, the benefits include immediate cash yield participation, typically lower fees, faster deployment and the compounding effect of sustained long-term exposure. Open-end funds are also complementary to closed-end allocations, offering portfolio flexibility and liquidity optionality that can be drawn upon across the broader infrastructure market.

To see how open-end structures drive long-term value creation, view the full insight piece.