It seems everyone is getting into the infrastructure act. And now it’s private wealth’s turn to take the leap and offer private alternatives to investors who are getting used to nontraditional asset classes.
At the institutional level, infrastructure investment has grown, and remains attractive due to its secure, often regulated stable cash flow properties, which help match the liability issues facing many of those investors. According to the Organization for Economic Co-operation and Development (OECD), institutional investors in OECD and G20 countries have about $64.8 trillion in infrastructure assets under management. For large investors, most of that ends up in closed-end funds with finite lifespans of about 10 to 12 years.
That trend of infrastructure investment and alternative investing has bled into the arsenal of private wealth managers, who are increasingly looking at asset classes such as real estate, and now infrastructure. A report by Bain and Co. says