Many institutional investors have been trending toward a more direct, do-it-yourself approach to infrastructure investments for a variety of reasons — high outside management fees combined with lower than expected returns, insufficient transparency and lack of control over individual investments. It is true that direct investing can potentially help investors lower their management fees and retain more control over their investment strategy and holding periods than they would if investing in blind pools. But for those contemplating direct investments, co-investments or club investments, and for those who have already started that process: Be careful what you wish for. 

One of the most important ingredients for a successful relationship is clear communication, whether it’s between parent and child, husband and wife, or investor and manager. In particular, clear communication can set expectations so that future events don’t create unpleasant surprises.

Michael Anikeeff, Ph.D.is professor — and former chair from 1991–2013 — of The Edward St. John Real Estate Department, Carey Business School, Johns Hopkins University. Anikeeff joined the Johns Hopkins Carey Business School in 1991. He is a professor in the practice track with expertise in the areas of real estate development and urban planning. I3senior editor Drew Campbellspoke with Anikeeff about the university’s recent addition of a focus on infrastructure to its Masters of Real Estate and Infrastructure degree program.