While infrastructure deal volumes declined by 8% in 2024, following a 19% drop in 2023*, there are
indications of improvements in 2025. Most funds are reporting strong deal pipelines, yet getting the deals
across the line is still proving challenging because of higher interest rates, regulatory concerns, price
discrepancies, geopolitical uncertainty, and lower economic confidence. The expectation is for increased
activity in the second half of 2025. This optimism is supported by improving economic conditions, investor
sentiment and the sheer volume of work purported to be going on ‘behind the scenes’.
Here’s five ways funds are positioning themselves and preparing to hire or develop leadership talent:
1. Strategic Talent Pipelining
Even with slower deal flow, many funds are actively building talent pipelines for senior roles both within the funds themselves, or within their portfolio companies, so they are ready to capitalise when the market rebounds:
- Passive searches: They are engaging in “soft” searches or mapping exercises to identify and pre-vet future leadership candidates.
- Interim and advisory roles: Hiring experienced professionals as interims, advisors or operating partners allows funds to test leadership capabilities without committing to full-time roles during a quieter cycle. Professional interims can deliver short, sharp transformational bursts as and when businesses need it.
2. Broadening Leadership Skillsets
Funds are reassessing the skill sets needed for the next cycle, especially given the convergence of infrastructure, energy transition, and digital assets:
- ESG and energy transition experience are in demand as funds pivot toward climate-aligned assets and impact investing.
- Operational expertise: With a focus on value creation and asset optimisation (instead of just acquisitions), leaders with asset management, digital transformation, and platform-building experience are prioritised.
- Global/local hybrid leaders: There’s increased interest in individuals who can navigate local regulatory frameworks while implementing global investment strategies.
3. Internal Talent Development
Given hiring freezes or caution in new recruitment, many funds are investing in developing internal talent. Again, we have observed this both within the funds, but they are also demanding more of their portfolio Chief People Officers, targeting them on driving much more holistic talent development programmes:
- Structured leadership development programmes.
- Succession planning for retiring leadership roles.
- Rotations to broaden internal exposure across asset classes and geographies.
4. Opportunistic Hiring
While broader hiring may be slow, several funds we’ve spoken to are still opportunistically hiring senior professionals when the right person becomes available, especially if they:
- Bring proprietary deal flow.
- Have a strong LP or co-investor network.
- Offer expertise in niche or emerging sectors (e.g., hydrogen, data centers, EV infrastructure).
- Can demonstrate clear functional or leadership expertise for where a particular portfolio company might be in its current cycle.
5. Preparing for Regulatory and Political Shifts
Funds are hiring or elevating professionals who can engage with regulators and stakeholders, especially as infrastructure increasingly overlaps with public policy (e.g. clean energy subsidies, broadband access, etc). Exceptional communication at all levels of an organisation are more crucial than ever.
Even in a softer market, forward-looking funds view leadership hiring as a strategic lever. Rather than pausing entirely, they are recalibrating hiring timelines, prioritising future-fit skills, and engaging in “preparatory” recruitment to be first movers as the market improves and deals start flowing more freely again.
For more information please contact Tim Shaw
