View all insights
image

Infrastructure Investment Strategies

Introduction

Whether a country is categorized as “emerging” or it is a fully developed and sophisticated country, such as Japan, the US, Australia or Western Europe, infrastructure is vital to a country’s economic and social development. Infrastructure is the backbone of a country that provides the most basic of necessities such as water, energy and waste management, followed by other additional services such as transportation and communication. These fundamental infrastructure assets are also supplemented by ancillary social assets including facilities for healthcare, education and community services. As the global population continues to grow and every country continues along its own evolutionary path, there is no denying the increasing need and demand for infrastructure investment strategies to support human activity.

In the context of the private markets, infrastructure has also matured over the past ten to fifteen years to become its own asset class much like venture capital, buyout and private debt. For investors, the appeal of infrastructure investing is due to a number of characteristics unique to infrastructure, including its relatively higher resilience to economic cycles (e.g. people will always need energy and water, regardless of how the economy is performing). This strategy also comes with the benefit of investing in relatively lower risk, tangible assets that continuously generate steady yield, which then provides for a more attractive liquidity profile compared to traditional private equity investment strategies, such as venture capital, growth equity and buyout. In a portfolio context, these attributes of infrastructure investment strategies can provide important risk mitigation and hedge against other relatively riskier private markets strategies.

Article
Dataset
Risk management
Market research
Market performance
Investing trends
Fund of funds
Consultants
Brokers

Read next

image

A Question of Performance

The CEPRES global buyout funds index has outperformed the S&P 500 and the MSCI ACWI – which tracks a broad selection of large- and mid-cap stocks from 47 markets – every quarter in every year since 2001. 

People looking at tablet

Comparing Infrastructure Returns Between the Private and Public Markets

Private markets face numerous intersecting headwinds: growing volatility, geopolitical uncertainty, inflation, rising interest rates and more. These events have led to large drops in market valuations of many startups and difficulties raising new capital in follow-on financing rounds.

image

Impact of Latest Macroeconomic Factors for Venture Fund Investors

Private markets face numerous intersecting headwinds: growing volatility, geopolitical uncertainty, inflation, rising interest rates and more. These events have led to large drops in market valuations of many startups and difficulties raising new capital in follow-on financing rounds.

Client Exclusives

Private credit: Spotlight on deals — the winners and losers & bounce back from the crisis

Read more
image

Navigating Private Debt: A Deep Dive into Historical Risk and Returns

Read more
image