Private Capital Trends in Infrastructure Investments: Diversifying Portfolios for a Sustainable Future
Key Ideas
- Private capital increasingly funds traditional state-run infrastructure, offering returns of 8-15% and diversification into renewable energy and social infrastructure.
- Investors like Patrizia and Golding target high-yield investments ranging from EV charging networks to schools and hospitals, with standard sizes around 100 million euros.
- Debt investments in infrastructure are rising, with a focus on returns of 7-10% through junior debt tranches and multi-manager funds.
- Infrastructure investment timelines span about 15 years, with early exits facilitated through the secondary market for liquidity and portfolio management.
Private capital has been flowing into infrastructure investments, traditionally the domain of the state, due to insufficient public funding. This trend offers returns between 8-15% in assets like renewable energy, EV charging networks, and social infrastructure. Asset managers like Patrizia and Golding are actively involved in diversifying investment portfolios, with a focus on energy transition and sustainability. Debt financing in infrastructure projects is gaining popularity, providing opportunities for returns between 7-10%. Investment timelines typically span 15 years, with early exits facilitated through the secondary market. Private investors are also targeting social infrastructure like schools and hospitals, acknowledging the importance of such assets in a sustainable society.
Topics
Investing
Renewable Energy
Infrastructure
Climate Change
Asset Management
Investments
Private Equity
Debt Financing
Pandemics
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