Private infrastructure funds invest in the development, maintenance, and operation of essential systems, such as water, transportation, sanitation, pipelines, electrical grids and other resources necessary to society.
A fund may acquire and manage an asset or provide financing for its development and maintenance. Funds may also invest in future infrastructure needs, such as providing financing for data centers and other underpinnings of our digital lives.
Infrastructure projects are typically classified as either greenfield (undeveloped, or under construction) or brownfield (existing facilities that are operating, or potentially expanding). Returns typically stem from contractual payments for managing assets (which are often inflation protected) and/or value appreciation, depending on the strategy.
The funds vary widely in terms of underlying assets, investment mix (debt and equity), and investment strategy. Given the sheer number and types of unique potential p