Institutional investors have voted with their capital in recent years, supporting the argument that infrastructure can offer attractive risk-adjusted returns, yield and diversification characteristics that are distinct even from other real assets. This acceptance of private infrastructure is driving additional interest in listed forms of infrastructure investing. But, similar to other big real asset classes such as real estate, this interest has lagged the private side of the market.
However, given the shifting political winds and economic uncertainties of the current global economy and rising prices and keen competition for deals in the private infrastructure market, investors are beginning to take notice of the potential role for listed infrastructure.
In March, John McCarthy, head of global infrastructure at Abu Dhabi Investment Authority, said at an industry conference the sovereign wealth fund plans to target