Balancing Growth and Income in Infrastructure

June 29, 2026 | Dennis Yu, Research Analyst

Stacked column chart showing income return and capital return for various infrastructure sectors. For full dataset, please contact marquettemarketing@marquetteassociates.com.

This week’s chart highlights the varying return profiles across key infrastructure sectors by illustrating the split between income and capital appreciation. Digital infrastructure stands out given the extent to which total returns are driven primarily by capital gains with minimal contributions from current income. This reflects strong investor demand for data center platforms, where development pipelines continue to expand rapidly alongside accelerating AI adoption, cloud computing growth, and increasing data consumption. However, elevated entry valuations and ambitious growth assumptions are leading to a wider range of potential investment outcomes for this space as capital markets test the sustainability of current expectations.

In contrast, energy transition sectors, renewables, utilities, and transportation assets exhibit a more balanced profile, with a larger portion of returns generated via recurring cash flows and contracted revenues. As the buildout of data center capacity intensifies, significant investment will also be required in the infrastructure needed to power these facilities. This dynamic is creating attractive opportunities in adjacent sectors including renewable generation, battery energy storage, and grid modernization. While these investments may not offer the same headline return potential as digital infrastructure, they often benefit from long-term contracted cash flows, multiple pathways to value creation, and return characteristics that may be more suitable for core and core-plus infrastructure investors seeking durable income and downside protection.

Print PDF

Dennis Yu
Research Analyst

Get to Know Dennis

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Related Content

Line chart showing 10-year U.S. Treasury rate, 5-year/5-year breakeven inflation rate, and 10-year real yield from December 2025 through September 2026. The left axis shows rates from 3.6% to 5.4%, and the right axis from 1.6% to 3.0%. The Treasury rate and real yield rise notably in late 2026, while the breakeven inflation rate remains relatively range-bound around 2.3%–2.4%. For full dataset, please contact marquettemarketing@marquetteassociates.com.

09.28.2026

Getting Real on Inflation

The phrase “expectations of higher inflation” has become a staple in financial news to explain the increase in nominal U.S….

Dual-axis line chart comparing LBO/M&A/Recapitalization Activity, its average level, and the SOFR (90-Day) rate from 3Q18 through 2Q26. LBO/M&A/Recapitalization Activity ranges from approximately $0 billion to $100 billion, while SOFR ranges from 0% to approximately 5%. For full dataset, please contact marquettemarketing@marquetteassociates.com.

09.21.2026

Let’s Make a Deal

For much of the past several years, the conventional view has been that higher interest rates and stretched valuations would…

Line chart comparing annualized return and annualized risk for stock-bond portfolio combinations from 1976-2019 and 2020-2026. Two lines show the range of return and risk outcomes across portfolio allocations during each period. For full dataset, please contact marquettemarketing@marquetteassociates.com.

09.14.2026

No More Free Lunch?

There are many great things about working at Marquette Associates, but “Free Lunch Tuesday” is right at the top of…

Combination stacked column and line chart comparing EMD fund flows (columns) and index cumulative returns (lines), June 2024 to present. Indices used: JPM EMBI GD Index and JPM GBI EM GD Index. Since May 2025, Monthly Flows have been positive, with the exception of March 2026. Most recent datapoint: July 31, 2026 Hard Currency Flows $1.2B, Local Currency $1.6B, JPM EMBI GD Index at 21.2%, JPM GBI EM GD Index at 23.1%. For full dataset, please contact marquettemarketing@marquetteassociates.com.

09.08.2026

EMD’s Second Chance?

Over the last several years, emerging market debt (EMD) has faced several headwinds, with rising yields across other fixed income…

Combination stacked column and line chart showing U.S. Buyout (private equity) Net Asset Value holding periods, 2011 to 2025. Column categories include holding periods

08.31.2026

Zombie, Inc.

Private equity has always had a few portfolio companies that refused to leave the party. Today, however, the industry appears…

Five-line chart comparing yield on 30-year debt instrument for the United States, United Kingdon, France, Germany, and Japan, December 2021 to August 21, 2026. First data point in order listed previously: 1.9%, 1.1%, 0.9%, 0.2%, 0.7%. Most recent: 5.3%, 5.8%, 4.9%, 3.8%, 4.1%. For full dataset, please contact marquettemarketing@marquetteassociates.com.

08.24.2026

Long Weakened

The global bond market is facing renewed pressure as investors demand higher yields to hold long-dated government debt, pushing borrowing…

More articles

Subscribe to Research Email Alerts

Research Email Alert Subscription

Research alerts keep you updated on our latest research publications. Simply enter your contact information, choose the research alerts you would like to receive and click Subscribe. Alerts will be sent as research is published.

We respect your privacy. We will never share or sell your information.

Thank You

We appreciate your interest in Marquette Associates.

If you have questions or need further information, please contact us directly and we will respond to your inquiry within 24 hours.

Contact Us >