Why the uk is a great destination for infrastructure investment and why now. dalmore infrstructure series

Why the UK is a Great Destination for Infrastructure Investment — and Why Now THE DALMORE INFRASTRUCTURE SERIES P APER This 2 OFis15 document | Afor intended UGUST 2026investors only. This document is for information purposes only and does not constitute investment research, professional advice or a recommendation. All investments contain risk and may lose value. Past performance is not a reliable indicator of future returns. Information and explanations from public or third-party sources used in this document have been deemed reliable by Dalmore Capital at the time of writing, however no representation is made by Dalmore Capital as to the reasonableness, completeness or accuracy of the same. Any opinions, estimates, or forecasts expressed are the current views of the author(s) at the time of publication and are subject to change without notice. Disclosure of interests: Dalmore Capital managed vehicles hold interests in a portfolio of more than one hundred UK infrastructure projects, including Cadent Gas and a portfolio of EDF onshore wind assets — positions in precisely the market this paper discusses. That interest is disclosed so readers can weigh the analysis accordingly. Dalmore Capital Limited is authorised and regulated by the Financial Conduct Authority (FRN:509930).

With infrastructure representing around 10% of Canadian pension portfolios and around 7% of Australian ones, UK pension schemes are playing catch-up. Alistair Ray, Chief Investment Officer of Dalmore Capital, analyses the scale and potential of UK infrastructure investing — and why the next several years may represent a particularly favourable window in which to deploy capital.

1. KEY POINTS • The UK offers a rare combination of political stability, strong legal protections, deep capital markets and openness to foreign investment, making it one of the world’s most attractive destinations for long-term infrastructure capital.

• It is also one of the world’s most proven infrastructure markets, with decades of successful private-sector participation under established regulatory frameworks — and a history, across debt and equity strategies, of behaving as investors want infrastructure to behave: reliable, income-generative, with low realised loss rates.

• A significant pipeline of future investment opportunities is emerging, driven by ageing infrastructure, the government’s £725 billion ten-year Infrastructure Strategy, and the substantial capital requirements of the transition to net zero.

• Current market dynamics create a potentially attractive entry point. Global and pan-European capital has drifted away from the UK since Brexit; the London-listed infrastructure trusts — historically the backbone of the mid-market — have been unable to raise new capital since interest rates rose and their shares moved to discounts to net asset value; and the global mega-funds are focused on a handful of much larger transactions.

• A new generation of domestic buyers is set to emerge over the next five to ten years, supported by the Mansion House Accord, the Pension Schemes Act 2026 and related reforms that could direct tens of billions of pounds of UK pension capital into infrastructure.

• Investors deploying capital today may therefore benefit twice: from attractive acquisition valuations now, and from stronger future exit opportunities as assets bought in today’s less competitive market are ultimately sold into a deeper and more active domestic buyer pool — an outcome we treat as upside to, rather than part of, the base case.

Most institutional investors access infrastructure through global or pan-European funds. That approach has served the asset class well, but it can leave allocators underexposed to individual markets at the moments they offer the best risk-adjusted entry points. We believe the UK is at such a moment. This paper sets out why the UK remains one of the world’s most attractive destinations for infrastructure capital, and why the next several years represent an unusually favourable window in which to deploy it. For the UK’s own pension capital — the investor this series ultimately addresses — the case carries a further, structural advantage: sterling assets…