The infrastructure sector is rebounding after a slow start in 2023, with Q3 witnessing a notable $54.5 billion in capital raised, exceeding the 2016-2022 quarterly average. The rolling average, while slightly below the long-term trend, reached $42 billion by September 2023. However, final fund closes were modest at $5.1 billion, contributing to a year-to-year aggregate of $20 billion, below historical averages, potentially due to investor hesitation tied to delayed exits.

The unexpected 2023 slowdown, particularly compared to other asset classes, is attributed to a sharp pullback. Nonetheless, an upswing in interim closes in the third quarter indicates a return to a more normalized pace, fueled by anticipation of easing credit tightening.

Infrastructure fund managers hold substantial dry powder of $353 billion, signifying ample investment potential. The sector is also witnessing an uptick in fund activity, with 577 funds targeting $532.7 billion as of October 2023, reflecting growing investor interest. The infrastructure sector is showing resilience and adaptability, with rebounding capital raising and plenty of dry powder. Stakeholders should remain agile to navigate challenges and seize opportunities in this evolving landscape.