A growing understanding of the differences between private and listed infrastructure may lead to a growth in listed allocations. The scarcity of quality assets in the private market, coupled with the growing amount of dry powder and heady private-asset valuations will strengthen the case for listed infrastructure.
While the majority of investors’ attention in the infrastructure space is focused on the private or unlisted side, we believe additional thought should be given to the complementary benefits of the listed sector.
The listed infrastructure investable universe is smaller in terms of total assets under management versus private investments. But the underlying enterprise value of the GLIO Global Infrastructure Index constituents currently stands at approximately $3.6 trillion, and is roughly four times larger than the respective enterprise value of the Preqin Private Infrastructure Index constituents.
Investing in listed infrastructure may aid overall po