“Emotional intelligence is crucial to our work as investors”

€577 billion—this is the total value of assets managed globally by APG as of June 2024. The goal? Delivering secure retirements in a sustainable world for the participants of its funds. Naturally, the portfolio is diverse: from investments in wind farms in the Netherlands to shares in Australian retail companies, and from stable bonds to the more volatile trading of gold or soybeans. But who are the people behind these investments? What drives them? What choices do they make—and why?  

In this installment of ‘The Investors’ series: Carlo Maddalena, Senior Portfolio Manager Infrastructure and Europe Transport Lead at APG.

Carlo Maddalena was recently named one of ‘infrastructure’s rising stars’ by Infrastructure Investor. This recognition aligns with the sector’s growing momentum—it’s one of APG’s top-performing strategies, managing €27 billion in infrastructure assets as of June 2024. Several megatrends are shaping this space: decarbonization, digitalization, and deglobalization. Maddalena believes these trends will make infrastructure “a hot market in 2025 and beyond”.
 
How would you describe APG’s approach to infrastructure investments, particularly in transport?  
“At APG, we invest, on behalf of our fund clients, in high-quality, essential service businesses with long-term value creation in mind. This sets us apart from short-term focused fund managers. It’s about looking beyond economic cycles—a strategy that’s served our portfolio well. In the transport sector, take the pandemic, for instance: while many pulled back from toll roads due to uncertainty, we invested. We embraced short-term volatility because we trusted in traffic recovery. That decision has paid off and helped us outperform the market. Our success is rooted in our experience—we’ve been investing globally in infrastructure since 2004, navigating cycles and structuring deals that provided attractive risk-adjusted returns for our clients.”  

Why do you believe transportation infrastructure will be “the hottest market in 2025”?  
“Transport is integral to daily life. Post-COVID data shows that people are traveling more than ever, often exceeding pre-pandemic levels. Meanwhile, the electrification of transport is driving demand for charging infrastructure—both in car parks and on highways. At the same time, the boom in online shopping and global trade is straining logistics, ports, and airports. Supply chains need modernization—whether through rail, aviation, or roads. This year alone, we’ve invested in two Spanish mobility companies, and the energy transition offers even more opportunities.”  

What factors could challenge your prediction?  
“These trends rely on resilient infrastructure and robust supply chains. Meeting rising mobility demands requires significant capacity growth. Add to this the challenges of climate risks—like Spain’s recent floods—and the energy transition. At APG, we’re tackling these through what we call ‘asset management 2.0.’ Climate change and macroeconomic risks are central to our long-term strategy.”  

Transport is a major source of CO₂ emissions. How can you, as an investor, contribute to reducing emissions in this sector?  
“Transport’s emissions are a priority for us. For example, we’re scaling investments in EV charging infrastructure. Despite EV adoption challenges, we see immense growth potential. We’re also driving change in aviation, such as decarbonizing operations at Brussels Airport. Beyond this, we’re targeting decarbonized mobility across car parks, rail, ports, and roads.”  

Does APG collaborate with other stakeholders in these efforts? After all, the activities at Brussels Airport alone are just a drop in the ocean. 
“Absolutely. Our partnerships aim to spark a snowball effect. While no single effort solves the climate challenge, we want to inspire other investors to back large-scale innovations. By signaling our commitment, we hope to encourage entrepreneurs to bring new solutions to market.”  

What impact might a Trump return to the White House have—particularly his threats of high import tariffs and withdrawal from the Paris Climate Agreement—on global investments?
“Supply chains would face disruptions, likely causing inflationary pressures. But it could also drive opportunities—like boosting European manufacturing in strategic sectors tied to the energy transition. This aligns with Mario Draghi’s recommendations to strengthen European competitiveness. Funding innovative businesses will require both government and private capital.”  

Your colleague Jan-Willem Ruisbroek once described infrastructure investment as a blend of technical project knowledge (like toll roads) and financial expertise. What do you see as key when preparing and closing a deal?  
“Indeed, deals involve a wide range of aspects: financial, commercial, technical, and legal—all of which can significantly impact an investment. And don’t overlook the emotional side. Emotional intelligence is crucial for fostering collaboration, adapting to shifting situations, and influencing processes, both internally and externally. Our work goes far beyond spreadsheets, so to speak.”  

You’ve been with APG for eight years. What has changed during that time?  
“When I joined in 2016, our team was predominantly Dutch, and I was among the first international hires. Now, we’re far more diverse. Our portfolio has tripled in size—from €10 billion to nearly €30 billion—making us one of the top five global infrastructure investors. Our focus has shifted too. We’re now investing in impact and tackling megatrends like energy transition, digitalization, and urbanization. This evolving mandate is scaling up our team and accelerating our investment pace.”