Valuation update for the energy and infrastructure sector

Three key themes from the valuation update:

• Discount rates remain relatively high, linked to persistently elevated risk-free rates
  Although lower short‑term yields and tighter spreads have reduced the cost of debt, higher risk‑free rates continue to drive elevated discount rates, leading to more conservative pricing and a greater reliance on growth to support value.
• Recent transactions continue to benchmark net asset value (NAV) performance 
  Private market activity continues to support valuations at, above or close to NAV, while listed yield‑focused funds face particularly pronounced discounts, highlighting the divergence between public and private markets.
• Revenue and operational risk considerations key to BESS valuations
  Progress in contractual structures and improved near‑term forecasting signal a maturing market, but BESS valuations remain highly sensitive to revenue assumptions, asset‑specific structuring and broader risk considerations.

Download our quarterly valuation update for Q3 2025.

to see the previous valuation update, go here.