Reflecting on 20 Years of Infrastructure Investing at PGGM

Last year marked a major milestone for PGGM’s Infrastructure team: our 20th anniversary. As I look back on these two decades, I am struck by how much the world of infrastructure investing has transformed, and how our team and portfolio have grown alongside it. 

From nascent beginnings to a mature asset class 

When we began our journey in 2005, infrastructure was still a relatively new asset class for institutional investors. Our early investments focused on traditional assets such as regulated utilities, PPP projects, and toll roads. The market was nascent, and infrastructure was seen as an emerging opportunity, rather than a core component of institutional portfolios. 

Fast forward to today, infrastructure has become a mature, well-understood asset class. Institutional investors now recognize its value in providing inflation-linked revenues and balancing risk and return, especially after weathering several economic cycles. Infrastructure sits alongside private equity, real estate, listed equity, and bonds as a fundamental part of asset allocation for pension funds, insurers, and sovereign wealth funds. 

A new approach: Direct investment strategies 

One of the most significant shifts has been the rise of direct investment strategies. PGGM embraced this approach early, starting in 2010, allowing us to play a more active role in shaping our investments together with management teams of our portfolio companies. The asset class itself has also broadened, evolving to support both the backbone of our economy and new trends like digitalization and the energy transition. 

Looking ahead: objectives and milestones 

Looking to the future, one of our key objectives is to align our infrastructure portfolio with the 3D investment strategy of PGGM and PFZW:—balancing risk, return, and sustainability. This means actively rebalancing our portfolio and rotating assets to ensure we meet our financial and societal goals. We’re excited about several upcoming milestones and the respective growth plans in the investment portfolio that will help us deliver on this ambition. 

Team evolution: growth and diversity 

Our team has grown tremendously over the past 20 years. From a handful of colleagues, we now have over 40 investment professionals representing more than 10 nationalities. This diversity is no accident, it’s the result of a deliberate effort to build an inclusive team with a broad range of perspectives and expertise. Today, our infrastructure portfolio stands at approximately €15 billion AuM, spanning energy & utilities, transportation, digital, social, and PPP sectors. Our success is underpinned by active ownership, strong governance, and a steadfast focus on sustainability. 

Celebrating 20 years and beyond 

As we celebrate our 20th anniversary, I am proud of how far we’ve come and excited for what lies ahead. The infrastructure team at PGGM remains committed to driving positive change, delivering value, and supporting the transition to a more sustainable future.

We are fully geared up for another wave of growth in line with the new investment strategy.