Infrastructure funds have been found to globally deliver strong performance over long periods of time at low levels of risk, according to new data published by eFront, a financial software and solutions provider dedicated to alternative investments.
Infrastructure funds typically have 13- to 15-year terms, with an average holding period of seven to eight years.
As private markets grow and gain in maturity, fund investors are expanding their investment horizons. According to the report, on a pooled average basis, European infrastructure funds outpaced North American funds with the highest return levels, and also trumped all funds globally. The study showed that European funds also offer low levels of risk.
The research identified two sources of risks associated with private infrastructure fund investing: the selection of funds and the loss ratio. According to the study, one of the risks associated with infrastructure investing can appear from a sudden mismatch be
