UK Infrastructure Investment Sees Favorable Valuations Amid Brexit Uncertainty

The UK offers an attractive destination for infrastructure investment due to its stable and well-regulated market, decades of proven infrastructure delivery, and favorable valuations shaped by circumstance rather than fundamentals.

Following Brexit, capital has drifted away from the UK, listed infrastructure trusts have been locked out of new funding, and mega-funds are focused elsewhere, leaving a competitive vacuum in the mid-market. The £725 billion Infrastructure Strategy and net-zero transition create a substantial pipeline of opportunity for investors.

UK pension schemes are playing catch-up with infrastructure investment, which represents around 10% of Canadian pension portfolios and 7% of Australian ones. Reforms such as the Mansion House Accord and the Pension Schemes Act 2026 will unlock a new wave of domestic pension capital over the next five to ten years.

Alistair Ray, Chief Investment Officer of Dalmore Capital, notes that investors deploying today could benefit from attractive entry valuations and a deeper buyer pool to exit into later. For UK pension capital, sterling assets and inflation-linked revenues offer a natural match against sterling liabilities and members' real spending needs.