Drew Campbell, i3 senior editor, spoke with Boston Consulting Group’s Andrew Claerhout about the firm’s recently published white paper, “Infrastructure’s Future Looks a Lot Like Private Equity.”
Many infrastructure investors want to invest for the long term, and infrastructure asset life cycles are long term — are there enough vehicles, funds or otherwise, for investors to make long-term infrastructure investments?
Typically, the type of vehicle used depends on the investment strategy the manager intends to pursue. As the infrastructure market has grown and matured, it has been segmented into various risk-return strategies, including super-core, core, core-plus, value-add and opportunistic, where risks and expected returns increase along a continuum as you move left to right, from super-core to opportunistic.
As mentioned in the BCG white paper, a decade ago infrastructure was quit