View all insights
image

Latest Insights on Infrastructure Investing

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 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 investments can provide important risk mitigation and hedge against other relatively riskier private markets strategies.

Despite the advantages of infrastructure investments, this strategy also has its own unique set of complexities. In this article, we will explore the basics of infrastructure and take a closer look at the infrastructure markets in North America and Europe, followed by a deeper dive into historical returns across economic cycles and during periods of market disruption to better understand its investment behavior which will help to guide capital allocations and investment decisions.

Are you interested in the full whitepaper? Contact us today.

Article
General partners
Limited partners
Fundraising
Fund performance

Read next

image

Accurate Data and Analysis Determine Investment Success

Demand for rigorous and in-depth analysis of complex investment strategies is growing exponentially. Different industries can differ heavily in their risk/return outcomes and various strategies will deliver varying degrees of success. Only those with access to the right data and investment analytics can effectively navigate this dynamic environment.

image

Private Equity Fund Strategies

In the early days of this industry, private equity was exactly what it sounds like: capital from private investors went to private funds, which then invested in private companies. Private equity was easy and straightforward.

image

Q4 2020 Private Markets Outlook

According to initial estimates from the US Commerce Department, Q4 2020 GDP grew at an annualized 4%, and full-year GDP contracted by 3.5% making 2020 the worst year for the US economy since the end of World War II.

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