Open-end fund structures offer an advantage to investors in mid-market, next-generation infrastructure, according to a report by Aaron Vale, head of infrastructure client solutions with CBRE Investment Management, titled, “Why open-ended vehicles optimize mid-market next-generation infrastructure investing,” which was published in the April issue of Institutional Investment in Infrastructure.
Citing electrical-vehicle assets as an example, Vale says, “Fueled by long-term megatrends, next-generation infrastructure sectors often require an extended period of time beyond the typical five-year period of closed-ended funds to realize change and have that reflected in performance.” A closed-end fund might have a too-rigid time scope to be able to reap the full benefits of the investment. “Fund structures,” continues Vale, “are pivotal in supporting investment strategy execution.”
To access a pdf of the report,