Banks are still the primary source of infrastructure debt even after effectively pulling out of the market following the financial crisis. But the non-bank infrastructure debt fund market is emerging as an attractive option both for borrowers and investors with two broad segments:

1)        Senior debt, which has become something of an alternative for fixed income for investors facing artificially low sovereign debt yields, and,

2)        More junior debt investments which can provide compelling yields and are attractive to dedicated infrastructure investors interested in complementing their equity investments.

“There has been an evolution in this market over the last three to five years,” says Nick Cleary, director, Infrastructure Debt, at Hastings Funds Management in New York City. “There was a brief period after the financial crisis when the lack of infrastructure debt financing created a brief period of opportunistic investment. It put no