Infrastructure Investment

Investing in Infrastructure - becoming more difficult?

The Top 12 Infrastructure White Papers of 2017

Infrastructure is a fast-growing asset class, with many global pension funds still below their target allocations. In recent years, private equity firms have raised hundreds of billions of dollars for infrastructure projects, but deploying that capital effectively is a difficult process. Sourcing assets at attractive valuations is becoming more challenging; at mid 2017, PE firms had over $150bn awaiting deployment to infrastructure projects, according to Preqin.

Cohen & Steers suggests the listed market as the most effective means of implementing an allocation to global infrastructure investment in the current environment. Below we list the top infrastructure papers from the last six months, providing a variety of insights and viewpoints.

Savvy Investor

With Infrastructure, Follow the Assets (Cohen & Steers, Sept 2017)
Cohen & Steers explains how —when defined appropriately— listed infrastructure can not only provide diversifying characteristics but also access to unique total-return opportunities.

Fiscal Policy, Inflation and the Role of Real Assets (QMA, March 2017)
QMA analyzes historic returns during normal and above-average periods of inflation and makes the case for an allocation to real assets.

An introduction to infrastructure debt (Macquarie, 2017)
This introductory paper by Macquarie explains the basics and benefits to institutional investors of allocating to infrastructure as an asset class.

Assessing the Private Infrastructure Opportunity Today (Cambridge Assoc, 2017)
Cambridge Associates considers the shortfall in infrastructure spending, reviews the opportunity set, discusses performance trends, and highlights a few considerations for investors evaluating the opportunity.

Preqin Quarterly Update: Infrastructure Q2 2017
This Preqin report provides interesting and detailed insights on several infrastructure mega funds such as those of Blackstone Group and the Saudi Arabia Public Investment Fund, as well as trends and movements in Q2 of 2017.

The Case for Global Listed Infrastructure (Cohen & Steers, 2017)
Cohen & Steers examines the global listed infrastructure's historical investment characteristics and the secular themes driving significant capital formation in infrastructure globally.

Global Alternatives Survey 2017 (Willis Towers Watson)
This 95-page report presents the findings of the 2017 Global Alternatives Survey. Section 1 of the report delves into recent trends alternative asset classes. Section 2 lists the Top 100 alternative asset managers by AuM around the world.

Meeting the demand for listed infrastructure indexes (FTSE Russell, 2017)
FTSE Russell discusses how the infrastructure asset class can offer stable, inflation-linked returns and how listed infrastructure indexes enable investors to benchmark performance of the segment.

Infrastructure for Institutional Investors (Scope Ratings, 2017)
This research summarizes the essential characteristics of infrastructure investment, shedding light on the risks and benefits and exploring the various routes by which institutional investors can gain exposure to this asset class.

Alternative Methods of Investing in Infrastructure (Preqin, May 2017)
This 8-page report from Preqin examines alternative methods of investing in infrastructure assets.

The Benefits of Real Assets Diversification in DC Plans (Cohen & Steers, 2017)
Cohen & Steers shows how liquid real assets—such as infrastructure, real estate securities, commodities and natural resource equities —can offer an attractive means of diversification.

DNA of a Manager Search: Infrastructure (bfinance, 2017)
This paper provides a case study of three recent infrastructure searches, discussing the recent compression of returns and revealing intriguing new developments.

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