Infrastructure Investing

Infrastructure assets include toll roads, airports, ports, railways, power generation, electricity grids, pipelines, water and waste systems, mobile phone towers, fibre networks, data centres, hospitals and schools.

Many infrastructure assets have features attractive to long-term investors: high barriers to entry, essential services with steady demand, long-term contracts or regulated returns, and income that is often linked to inflation.

For example, a pension fund might invest in a regulated water utility, earning stable returns set by a regulator, or in a portfolio of solar farms that sell electricity under long-term contracts.

Infrastructure investments can be made directly, through private infrastructure funds or through listed infrastructure companies. Strategies range from core investments in mature, low-risk assets to more opportunistic investments in development projects or assets needing improvement.

Risks include regulatory and political changes, construction delays, demand changes, high debt levels and, for some assets, technological change. The need for investment in energy transition, digital networks and ageing infrastructure has made infrastructure a fast-growing area of private markets.