2021 saw private bidders enter the Australian listed market, snapping up long-standing essential infrastructure companies. AusNet Services, Spark Infrastructure and Sydney Airport headed into the confines of private hands and out of the larger public domain.

In a way, it is not surprising; asset owners such as pension funds and sovereign wealth funds are looking to increase allocations to infrastructure, but they lack quality assets in the private market. Private-market participants can easily pay 40 percent premiums over listed multiples, so lifting out a listed company can offer better value for money.

“Listed airports, including Sydney Airport, lost anywhere between 35 percent and 50 percent of value when the share market corrected in 2020,” notes Sarah Shaw, founder and chief investment officer of 4D Infrastructure. “So, you can understand why unlisted investors with long-term horizons and cash are taking the opportunity to scoop up such undervalued listed as