- March 1, 2015: Vol. 8, Number 3

To read this full article you need to be subscribed to Institutional Investing in Infrastructure

Infrastructure debt markets take off: Infrastructure debt funds are stepping in to fill a void in the project finance market

by Tyson Freeman

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

Glossary, videos, podcasts, research in the Resource Center

Forgot your username or password?

Close your account?

Your account will be closed and all data will be permanently deleted and cannot be recovered. Are you sure?

We respect your privacy! Please give consent for processing data as described in our Privacy Policy