These days, it feels like the entire US road system is covered in orange cones. Infrastructure spending has soared across the country, fueled by historic federal funding. But it’s not just asphalt and orange barrels, this boom extends to airports, seaports, logistics hubs, and a massive rush to build the high-power data centers required to run Big Tech and Artificial Intelligence.
With private capital pouring in alongside government dollars, infrastructure investing has officially become a core pillar of modern wealth management.
At Baldwin, we aren’t new to this space. We have intentionally included infrastructure in our investment strategies for years. Why? Because these physical assets offer unique stability. While the stock market rides a rollercoaster, a toll road or a power plant keeps generating cash. More importantly, data has shown that infrastructure can outperform other asset classes during high-inflation environments. When prices rise, the value of these foundational assets tends to rise with them.
Public vs. Private: How the Pieces Fit
There are two ways to play this boom:
- Private Infrastructure: This involves direct, illiquid ownership of vehicles. Historically restricted to institutional giants, private infrastructure has attracted over $1 trillion from investors and is projected to surpass $2 trillion by 2029 (Blackstone).
- Public (Listed) Infrastructure: This gives regular investors daily liquidity through mutual funds, ETFs, and master limited partnerships (MLPs). It allows you to own shares in the publicly traded operators of toll roads, cell towers, railroads, and utilities.
How We May Implement This For You
We don’t expect you to go out and scout these funds yourself. Over the years, Baldwin has vetted and deployed a select group of managers to capture this global trend. Depending on your portfolio, we utilize:
- Lazard Global Listed Infrastructure Fund: A staple at Baldwin for over a decade. This fund holds global giants like the UK’s National Grid, the French construction and wind-energy firm Vinci SA, American Tower Corp, and Canadian National Railway. It has a proven track record, boasting double-digit 5- and 10-year average returns.
- GlobalX US Infrastructure Development ETF: A recent addition specifically targeted at capturing domestic spending, holding vital companies like Eaton Corp and CSX.
- BlackRock Utilities, Infrastructure & Power Opportunities Trust: A closed-end fund focusing heavily on robust British, Canadian, and US infrastructure companies.
- Brookfield Infrastructure Partners: A premier master limited partnership (MLP) that we use for direct asset exposure (note: this generates a K-1 at year-end).
- Additionally, in our Baldwin Signature Growth Portfolio we also invest in individual companies building the future, such as heavy-equipment giant Caterpillar Inc. or GE Vernova, along with others in our portfolios that are a part of constructing data centers, wind farms, and nuclear projects worldwide.
The Bottom Line
Infrastructure isn’t flashy, but it is steady. We are highly comfortable maintaining an investment allocation to infrastructure in client portfolios to act as an engine for inflation-protected growth.
The next time you’re sitting in construction traffic, just remember you might actually own a piece of the progress.
Sources
BlackRock (The Power of Infrastructure)
Blackstone (Private Infrastructure Allocations are Growing)
Caterpillar Inc. 2025 Annual Report
Lazard Asset Management, Economics Observatory.
Disclosures:
*During the referenced period, the MSCI All Country World Index ex-USA outperformed the S&P 500 Index by approximately 8 percentage points. Index returns are unmanaged, do not reflect fees or expenses, and are not available for direct investment. *Past performance does not guarantee future results. While early-year performance trends have favored international markets, future results are uncertain and subject to market risk. There can be no assurance that current trends will continue.
The opinions expressed in this Commentary are those of Baldwin Investment Management, LLC. These views are subject to change at any time based on market and other conditions, and no forecasts can be guaranteed. The reported numbers enclosed are derived from sources believed to be reliable. However, we cannot guarantee their accuracy. Past performance does not guarantee future results. We recommend that you compare our statement with the statement that you receive from your custodian. A list of our Proxy voting procedures is available upon request. A current copy of our ADV Part 2A & Privacy Policy is available upon request or at www.baldwinmgt.com/disclosure.
Richard K. May, MBA, Managing Director
Richard founded his financial advisory firm in 1980, which was one of the early fee-only advisors in the industry. He received his B.A. from Princeton University and his M.B.A. from the University of Michigan.
In 2007, Richard founded the West Chester LLC, a private equity company that promoted and funded business start-ups and public projects in the Borough of West Chester. In 2011, he co-founded the Uptown! Entertainment Alliance and the Uptown! Bravo Theatre, LLC. Together they purchased and rehabilitated the National Guard Armory, and then opened the Uptown! Knauer Performing Arts Center in 2016. Richard has served on the boards of many non-profits and community service organizations over the years.