It is our view that the logic of pension schemes disintermediating banks and lending directly to infrastructure borrowers in inflation-linked form is overwhelming. We believe that significant benefits will be shared between the pension schemes and infrastructure borrowers. We also expect a “social dividend” as greater efficiency results in lower cost delivery of infrastructure to the UK economy. However, despite the compelling case for direct lending by pension schemes, to date the market have developed slowly. This paper explores the scale of the opportunity for pension schemes to take advantage of this market inefficiency and the benefits this could deliver in terms of managing risk and funding costs. We identify barriers to growth of the market and discuss how these may be overcome.