The Impact of Inflation and Rising Interest Rates on Infrastructure Investing
Higher inflation and rising interest rates will continue to provide opportunities and challenges for infrastructure investing and reminds us that not all infrastructure assets are created equally. Rising interest rates may put pressure on the recent premium pricing that we have seen in the largest core assets, but should have less of an impact on value-add assets, which have less interest rate sensitivity; while rising inflation may aid those infrastructure businesses with inflation linked pricing, inelastic demand, and stable cost structures, while adversely affecting those that don’t hold such attributes.
David Walsh
Managing Director, Goldman Sachs
David is a managing director in Alternatives Capital Markets and Strategy (ACMS), which oversees institutional capital markets, capital raising and client strategy across all direct-investing and open-architecture alternatives strategies throughout Goldman Sachs. Previously, he was a member of the public marketsinvestment team in Alternative Investments and Manager Selection. David joined Goldman Sachs in 2016 as a vice president and was named managing director in 2021. Prior to joining the firm, David worked at Investcorpfor two years and UBS for nine years in both London and New York. David earned a BS in Economics from Monash University in Australia.
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