Mid-Market Infrastructure Debt: A Defensive Allocation for a Changing Market Environment

Mid-market infrastructure debt can offer resilient income and downside protection because structural infrastructure demand, contractual cash flows and a less competitive lending segment support attractive risk-adjusted returns.

• The G20’s Global Infrastructure Outlook estimates a US$15-trillion infrastructure spending gap by 2040, while non-bank lenders provided 53% of infrastructure debt funding in H1 2025.
• Mid-market loans below US$100 million are relatively under-served: 795 such transactions were reported in 2025, versus 284 transactions at or above US$1 billion.
• Infrastructure debt benefits from long-term contracts, regulated tariffs, inflation-linked revenues, essential services, senior security, amortization and covenants, which can support income and recoveries.
• Moody’s data for 1983–2024 shows a five-year default rate of 4.6% for BB-rated infrastructure debt, compared with 7.9% for non-financial corporates, alongside lower loss rates.
• Fiera says its Infrastructure Private Debt platform has more than 20 years of experience originating, structuring, underwriting and managing infrastructure debt across North America, primarily in the middle market.

Takeaway: Investors seeking defensive private-credit exposure may find mid-market infrastructure debt attractive, but outcomes depend heavily on proprietary origination, structuring expertise and disciplined manager selection; the communication does not guarantee returns and relies on historical and third-party data.