Partners Group Warns Europe Infrastructure Push Inflating Assets

Workers on a highway bridge construction site near Luedenscheid, Germany.

Photographer: Alex Kraus/Bloomberg

Europe’s quest for sovereignty in critical infrastructure like power grids and digital networks risks unsustainable asset-price growth in the sector as cash continues to pour in, according to one of Europe’s largest private equity firms.

“Investors need to be careful of building infrastructure that is too expensive or doesn’t have the demand without the stimulus,” Esther Peiner, head of infrastructure at Partners Group, said in an interview.