Can you have too much of a good thing? Infrastructure market watchers are beginning to wonder if record amounts of uninvested capital will spur inflated values and eventually undermine returns. Or will it be a Mae West situation where, “Too much of a good thing can be wonderful.”

After years of pitching and cajoling, institutional investors have bought into the infrastructure story and have steadily allocated capital to the sector. Now come the challenges of success. After years of steady fundraising, investors are now keen to ramp up investment activity. But how will they effectively navigate the competitive market, sidestepping overheated parts of the market, and earn the expected returns?

Danny Latham, a partner in the direct infrastructure investment business at Colonial First State Global Asset Management, says that part of the answer is to recognize that infrastructure is a