The following article is an excerpt from a series of articles appearing in i3 from the report by Georg Inderst, Social Infrastructure Finance and Institutional Investors: A Global Perspective. The report with footnotes and references is available at www.georginderst.com or http://papers.ssrn.com/sol3/papers.cfm?abstract_id=3556473.
Invocations are growing for more private-sector finance in infrastructure, especially from “asset owners” such as pension funds, insurance companies, sovereign wealth funds (SWF), and endowments, as well as fund managers and wealth managers. How suited are they as financiers of social infrastructure, and what are the experiences so far? New institutional investment trends have been evolving in parallel in recent years:
more international investment, including emerging markets
passive investment style (following established investment indices)
factor investing (exploiting risk factors dri