Investors should commit capital to infrastructure after they have established clearly the role the asset class will play in their overall investment portfolios. That role can include all risk strategies, from traditional core to highly opportunistic plays. Given this, are there examples of exemplary investing — role models — that investors can emulate when looking to invest in this asset class?
Where does infrastructure fit in a portfolio? Unfortunately, no ideal, one-size-fits-all scenario exists. “Infrastructure has a very broad risk-return spectrum,” notes Barbara Weber, Ph.D., founding partner of B Capital Partners. “It can, therefore, fit in various areas of any institutional portfolio. How and where it fits depends on the investment strategy — most importantly, the risk-return strategy one pursues, which will drive investment decisions accordingly.”