Europe is becoming a more appealing destination for infrastructure investment as governments focus on enhancing their security and energy independence, according to Masoud Homayoun, the global head of infrastructure at EQT, a prominent private capital firm.
Homayoun stated, “The opportunities we’re seeing in Europe today are likely more attractive than they were just a few years ago.” He explained that while governments are concentrating on defense, there is also a strong push to improve the overall resilience of European infrastructure.
Recently, German lawmakers voted to significantly increase defense and infrastructure spending. Homayoun emphasized that there is now a greater push for private investment in infrastructure across Europe than at any time in the last decade. “What is occurring globally positions us at the forefront of investment,” he remarked.
EQT, which manages €269 billion in assets and is a key player in renewable energy investment, announced it has raised over €21 billion for its latest infrastructure fund. This fund aims to invest in various sectors, including renewable energy and digital infrastructure, across North America, Europe, and the Asia-Pacific region.
Homayoun mentioned that the fund has either secured agreements or is in discussions to invest in 12 companies, particularly those focused on decarbonizing and decentralizing energy production and storage. This includes a significant player in the UK that provides large-scale battery solutions.
Additionally, EQT has invested in the largest plastic recycling firm in South Korea and is actively supporting decentralized solar power and fiber internet projects in the US. He noted that while European governments are now more favorable towards renewable energy compared to previous US administrations, there are still many opportunities in the US market.
“The areas within renewable infrastructure that we are targeting through our funds are competitive due to technological advancements,” he explained, stressing that these investments are commercially viable and not dependent on government backing. However, he warned of certain segments of the renewable market that are too risky due to opposition from the current US administration, particularly concerning offshore wind projects.