For the majority of institutional investors, it is especially interesting to use debt instruments to gain exposure to infrastructure. However, evaluating and selecting the corresponding infrastructure loans is complex and requires an experienced partner. In particular, investor-specific regulatory requirements must be taken properly into account.
Infrastructure loans combine investor needs for diversification and stability. Because of their low correlation with other asset classes, investments in infrastructure provide good portfolio diversification. Furthermore, the highly predictable cash flows and long maturities are attractive to investors. Compared to other forms of debt-based investment with similar returns, infrastructure loans have shown lower risk, a lower probability of default and higher recovery ratios.
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