Investing in the Reconstruction of the Physical Economy
For the past two decades, the most valuable companies in the world were largely asset-light. Software scaled without factories. Platforms grew without permits. Capital flowed toward businesses that could expand quickly with relatively little physical infrastructure.
But the next phase of economic growth may depend on something different.
Electricity systems, industrial supply chains, and manufacturing capacity were largely built decades ago for a different economic structure. Today those systems face new pressures at the same time: electrification, artificial intelligence infrastructure, supply-chain reshoring, and renewed industrial policy.
Unlike software, physical systems cannot scale overnight. Transmission lines take years to permit and build. Large equipment has multi-year lead times. Industrial facilities require capital, regulatory approvals, and operational expertise before they produce their first unit.
This mismatch between rapidly rising power requirements and slowly expanding infrastructure is creating one of the defining capital opportunities of the coming decade: the rebuilding of the physical economy.