In an inflationary era, with rising interest rates and a war waging in Europe, investors can be forgiven for questioning their conventional methods and definitions of investments within their portfolios. Many investors, even before the economic turmoil of a pandemic, were already anticipating market corrections and, according to a McKinsey & Co. article titled Institutional Investing in the Time of COVID-19, they were embracing risk-factor approaches to portfolio construction. The article notes, “Those who implement these approaches do so largely because they believe that the promise of diversification failed in the last crisis, and that diversification across macro risk factors — equity risk, inflation, and rates, for example — is the right way to diversify.”

For institutional investors, that diversification can come in many forms, and for our purposes it comes in the form of infrastructure investments. However, what was once considered core — bridges,