We live in a world where technology is changing more rapidly than we can consume it. Some of the technologies being presented to us are straight out of a science fiction movie. And these technologies affect the world in which we live in more ways than we might think. Technologies such as driverless cars, drones and sensors are revolutionizing the infrastructure industry. Or they will be soon.
Many investors view infrastructure as a long-term investment and look for assets that will stand the test of time. Mark Wiseman, former CEO of CPPIB, put this sentiment best in a 2012 interview with McKinsey & Co.: “What we’re looking for is boring, predictable, long-term cash flows. And so the more seasoned the asset is, the more interesting it becomes to us.”
The problem facing many investors with this objective, however, is that there are not enough seasoned assets to go around. In other words, the supply of mature infrastructure assets with a strong record of perform