In the past year, we’ve seen a growing number of institutional capital platforms rethink the way they organize their investment teams. Most notably, several firms are moving to combine their real estate and infrastructure groups into unified “real assets” platforms. While this convergence presents a compelling case for efficiency and synergy, it also introduces meaningful complexity—particularly when it comes to executive hiring.
Convergence Is Gaining Traction
KKR made headlines in early 2025 with the announcement that it was merging its real estate and infrastructure groups, consolidating ~$157 billion in assets under a single real assets leadership structure. Their goal: to more seamlessly pursue hybrid strategies in areas like logistics, data centers, and digital infrastructure—asset types that increasingly blur the lines between traditional real estate and core infrastructure. Similarly, Blue Owl Capital has integrated digital infrastructure into its real estate platform through the acquisition of IPI Partners, and BlackRock’s acquisition of Global Infrastructure Partners reflects another step toward converging previously siloed investment mandates.
These are not isolated moves. They point to a broader structural shift in how capital is deployed across real assets. As physical infrastructure becomes increasingly digital, and as real estate becomes more reliant on long-term energy and transit systems, the old boundaries between asset classes begin to erode. In response, many firms are building integrated teams to reflect a more unified investment thesis.
Skepticism and Strategic Tension
Critics of the convergence model raise valid concerns. Some argue that real estate and infrastructure are simply too different to be managed under a single umbrella. They point out the differences in return profiles, regulatory risk, and operational complexity. A logistics warehouse with a short lease profile is a fundamentally different asset than a regulated utility or a toll road concession. For this reason, skeptics believe that forcing these asset classes together may create confusion, dilute expertise, and slow down decision-making.
Others take a more tactical view, suggesting that the shift to real assets is a temporary response to market pressures, not a permanent structural evolution. They argue that changes in interest rates, capital flows, or investor appetite could cause firms to revert back to their traditional silos.
Still, many of the firms leading this change are not treating it as a trend. They see it as a strategic rethinking of how capital should be allocated in a world where climate, technology, and urbanization increasingly demand a cross-asset perspective.
Evolving Profile of Executive Leadership
Executive leadership within real assets platforms looks very different than it did even five years ago. The expectations placed on leaders have expanded, and the demands of a converged platform require a broader, more integrated skill set. Today’s ideal candidate must:
- Understand both real estate and infrastructure investment frameworks, including the nuances of return profiles, regulatory landscapes, and asset operations.
- Manage cross-functional teams across multiple specialties, often bridging historically siloed departments.
- Lead with a cross-disciplinary mindset that aligns investment strategy, operations, and capital allocation.
- Navigate complex stakeholder environments—internally and externally—while maintaining strategic clarity.
- Align diverse performance metrics across assets with varying time horizons and risk profiles.
- Integrate and harmonize disparate team cultures, systems, and decision-making frameworks.
Leaders who have previously worked only in siloed environments may struggle to adapt—especially when asked to manage hybrid assets that don’t fit neatly into traditional categories.
Implications for Executive Hiring
In this environment, hiring becomes both a challenge and an opportunity. To compete effectively, organizations must:
- Rethink leadership profiles and move beyond conventional role definitions.
- Write job descriptions that reflect the demands of convergence and interdisciplinary management.
- Consider candidates with non-traditional backgrounds—particularly those with experience in sustainability, energy transition, digital infrastructure, or smart city development.
- Prioritize not only technical skill, but also adaptability, collaboration, and strategic vision.
The most successful firms will be those that align their leadership strategy with the evolving realities of the real assets landscape.
About the Author
Sun-Sun de Swaan
Partner
sdeswaan@mbexec.com
Sun-Sun de Swaan serves as a Partner at McDermott + Bull in the New York office where she leads the firm’s real estate practice. Sun-Sun brings over 20 years of real estate experience and works with clients across the sector, including firms involved with investment, development, financing, and property management. She has experience in a variety of functions across the industry, shaping her expertise and ability to deliver best-in-class talent to clients across the board.