The following article is an excerpt from the Long-term Infrastructure Association’s report, Social Infrastructure: from challenge to opportunity for investors. This is the first of several excerpts i3 will publish from the report. The full report with footnotes, graphics and references is available at: http://www.ltiia.org/wp-content/uploads/2021/10/ltiia_pwc_document_64_pages_full_final_28092021_pages-1.pdf
Soaring government debt levels have led to decreasing public investment and widening social infrastructure gaps, calling for financing methods outside the traditional public scope.
Private investors must step in to fill this gap. While public-sector investment will likely remain the primary source of social infrastructure financing, increased investments from the private sector could significantly transform the sector. Institutional investors’ vast assets pool, coupled with their strong appetite for longer-term, low-risk assets, rende