Institutional Real Estate, Inc. hosted its first webinar Oct. 15 — “Tomorrow’s Infrastructure in Today’s Economy: Developing Models for Finance and Investment in Infrastructure.” The event was a prequel to IREI’s Institutional Investing in Infrastructure conference Nov. 30–Dec. 2 in Washington, D.C., where this topic and others will be discussed. The results of those discussions will be published in the January issue of Institutional Investing in Infrastructure.
From the Current Issue
During the past couple of years there has been an intensifying debate among institutional limited partners (LP) and infrastructure general partners (GP) on the proper investment model for closed-end infrastructure. Limited partners are increasingly taking the position that the “2 and 20” model for fees and carry that seems to have been inherited by these funds from the private equity market is inappropriate and are pushing back.
This is the second part of a three-part “Food for Thought” report that explores a conceptual model — detailed on page 8 — that uses federally credit-enhanced taxable revenue bonds for institutional investors to finance U.S. infrastructure projects.
Steven Klein has worked for nearly 30 years in infrastructure finance, investment banking and credit markets. He is the founding partner of First Infrastructure, a consulting and advisory firm focused on infrastructure, energy finance and capital markets. He is currently assisting the U.S. Department of Energy (DOE) with the development of an expanded Loan Guarantee Program. Institutional Investing in Infrastructure senior editor Drew Campbell spoke with Klein about the DOE program.