Since its emergence as an asset class in the 1990s, infrastructure has increasingly featured as a distinct allocation within institutional investment portfolios.
Traditional infrastructure assets typically share specific attributes that support the delivery of steady investment returns throughout an economic cycle. These businesses tend to provide services that are essential to our society and operate under regulated or contracted frameworks that provide investors with a higher degree of revenue and cash flow visibility. Historically, many investors have achieved infrastructure exposure through the private markets, either by investing in private equity fund structures or into assets directly. This approach closely aligns with the role other private markets asset classes, such as private equity and private real estate, play in a portfolio. However, it is also possible to access the infrastructure asset class through listed equity strategies and doing so may prove to be advantageous in certain market environments.
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