Institutional Investing in Infrastructure

October 1, 2017: Vol. 10, Number 9

$0.00 Add To Cart

From the Current Issue


Telecom infrastructure: Accessing the global network

Telecom towers are an increasingly important investment opportunity as they are absolutely essential to everyday communications throughout the world. Operators need to develop larger, denser and more efficient networks to better handle the rising demand for mobile services as their customers continue to gain access to advanced handsets and high bandwidth applications.


The evolution of infrastructure as an asset class: Transparency, efficiency and regulation

Despite several decades of private money being allocated to infrastructure investment, the asset class does not have a clear common definition, from a financial investor perspective. This situation only started to change in 2016, when infrastructure was defined as a separate asset class under Solvency II, a financial regulation for managing risk exposure that is binding on many institutional investors in Europe.


The wait for a deal: With federal infrastructure policy in the United States on hold, state and local P3s are in a bind

Investors have been anticipating the Trump administration’s big push for infrastructure investments in the United States, but their hopes have not been met with action because of the all too familiar Washington gridlock. This has put a lot of government agencies at the state and local levels — as well as the private investment managers hoping to work with them — in a tough spot. They have plenty of projects in need of financing and funding and plenty of design and build firms and investment capital at the ready, but the uncertainty about whether a $1 trillion federal-level infrastructure program will become law has left them waiting to see if they can get a better deal than what is being offered at the moment.


The struggle is real: Fundraising slows, but still finding demand

Today’s fundraising market might be best characterized as the “mega-fund era” — larger funds raised by larger established firms dominate. But that doesn’t necessarily mean they are having an easy time of it. If “mega-fund” is a good description of one of the trends in today’s market, another could be road warriors — infrastructure investment managers are hitting the road. According to IREI’s FundTracker database, of the 32 new funds launched as of Sept. 1, 18 of the products that have an announced maximum fund target are seeking to raise an aggregate of more than $68.6 billion.


The opportunity for investors in infrastructure debt

With infrastructure funding needs rising globally, and most governments facing budget pressures, the private sector increasingly plays a critical role in closing the funding gap, and infrastructure debt represents an important part of this needed capital. Infrastructure debt has traditionally been a space occupied by banks, but in recent years it has gained popularity among investors, with the infrastructure fixed-income and private-loan markets becoming more prominent, and representing a valuable source of duration for long-term investors.

Forgot your username or password?