Browsing: Infrastructure


Crumbling infrastructure offers mid-market investment opportunities

Jun 3rd, 2018 | Filed under: Newly Added, Infrastructure, Socially responsible investing, Operationally Intensive Real Assets, Real Assets, SRI and Clean Energy

Deteriorating infrastructure and potential for investment is the topic of a new white paper by Fiera Capital, a Canadian investment management firm. Infrastructure is generally understood to involve physical assets that provide a public service, including those most vital to economic development. The category includes water and waste-water systems, highwaysRead More

KPMG’s Report Cards on Real Assets

Jan 23rd, 2018 | Filed under: Newly Added, Real Estate, Infrastructure, Liquid and Fixed Income Real Estate, Institutional Investing, Natural Resources and Land, Operationally Intensive Real Assets, Institutional Asset Management, Real Estate Equity Investments, Real Assets

KPMG has posted a new paper looking at the role of real assets (defined as “anything where there is a tangible/physical asset being traded”) within a portfolio, with a focus on opportunities for U.K. based institutional investors, especially pension schemes. It begins with a brief survey of the field. RealRead More

Searching for the Right Infrastructure Manager: 3 Case Studies

Jan 14th, 2018 | Filed under: Newly Added, Infrastructure, Institutional Investing, Operationally Intensive Real Assets, Institutional Asset Management, Real Assets, Allocating to A.I.

A new paper from bfinance (an independent financial services consultancy headquartered in London) discusses the “dramatically different era” into which infrastructure investing has entered over the last two years. The paper, “DNA of a Manager Search: Infrastructure,” looks at three recent unlisted infrastructure searches, in order to glean some insightRead More

Real Estate: A Global Outlook

Jul 13th, 2017 | Filed under: Newly Added, Infrastructure, Operationally Intensive Real Assets, Real Assets

PWC and the Urban Land Institute have jointly issued a report on “emerging trends in real estate” around the globe, which stresses that real estate’s attraction as an investment, even as a cross-border investment, has held up notwithstanding unprecedented levels of concern about geopolitics. The “global drift back to domesticRead More

Citi GPS on the Infrastructure as Asset Class

Mar 19th, 2017 | Filed under: Newly Added, Infrastructure, Operationally Intensive Real Assets

Citi Global Perspectives and Solutions (Citi GPS) has published a new white paper on the global need for infrastructure spending. The authors are: Jason Channell, head of EMEA Infrastructure Research; Elizabeth Curmi, Global Thematic Analyst; and David Lubin, head of Emerging Markets Economics. Channell et al contend that “now couldRead More

SWFs Looking to PEs Both as Intermediaries and as Co-investors

Feb 2nd, 2017 | Filed under: Newly Added, Infrastructure, Natural Resources and Land, Operationally Intensive Real Assets, Real Assets

A recent working paper from the European Corporate Governance Institute discusses direct investment by sovereign wealth funds in private equity transactions – that is, it discusses an ongoing shift from investing in PE funds to co-investing with PE funds. The paper describes this as a trend especially viable in theRead More

Infrastructure Project Finance: Benchmarking and Definitions

Nov 22nd, 2016 | Filed under: Newly Added, Infrastructure, Operationally Intensive Real Assets, Real Assets

In a new article in The Journal of Alternative Investments, three EDHEC-affiliated scholars, led by Frédéric Blanc-Brude, the director of the EDHEC Infrastructure, Singapore, look at recent improvements in the understanding of the financial performance of privately held infrastructure investments, debt or equity, with respect to benchmarking thereof.  They concludeRead More

Dakota Access and the Army Corps of Engineers: An Odd Mistake?

Nov 13th, 2016 | Filed under: Newly Added, Commodities, Infrastructure, oil, Commodities, Operationally Intensive Real Assets, Commodities: Examples

On November 7, the U.S. Army Corps of Engineers put out a statement that said that the Dakota Access Pipeline (DAPL) had agreed to halt its controversial ongoing construction in North Dakota. The following day, which happens to have been Election Day, [so non-election news went largely uncovered], the ownersRead More

McKinsey: Historically Anomalous Period Nears an End

Nov 6th, 2016 | Filed under: Newly Added, Infrastructure, The A.I. Industry, Operationally Intensive Real Assets, Alternative Investments in Context, Real Assets

McKinsey & Co. has posted a new report assessing the state and the future of the North American asset management industry, encompassing both active and passive managers and looking at five mega-trends. Skipping to the chase, the trends are these: The end of an anomalous eta of “exceptional investment returns.”Read More

Saving the World: One EM City at a Time

Oct 10th, 2016 | Filed under: Newly Added, Infrastructure, Operationally Intensive Real Assets

The Global Commission on the Economy and Climate has issued a new report urging governments and major financial institutions to “scale up and shift investment to sustainable infrastructure as a fundamental strategy….” The report, The Sustainable Infrastructure Imperative, has no force as law or policy anywhere, but it may signalRead More

Private Capital Fundraising Slows: Green and Brown Valleys

Jul 14th, 2016 | Filed under: Newly Added, Real Estate, Infrastructure, Farmland, Natural Resources and Land, Operationally Intensive Real Assets, Real Estate Equity Investments, Real Assets, Other Topics in A.I.

Preqin, the multinational data and consulting firm, has looked at the second quarter and found it was, for private capital fundraising  … slow. So was the quarter before it. Together they made up the first half of 2016, in which the funds closed in the world of private capital globallyRead More

Infrastructure: Look at the Contracts–Not the Industry or the Index

Jul 10th, 2016 | Filed under: Newly Added, CAPM / Alpha Theory, Infrastructure, Financial Economics Theory, Operationally Intensive Real Assets, Real Assets, Finance & Economics

A new paper from EDHEC Infrastructure Institute decides that there is no such thing as a listed infrastructure asset class. What is the practical significance of that inference?  It means that for investors (individual or institutional) looking to diversify their portfolio properly, a dedicated index focused on a listed infrastructureRead More

Welcome to Low-Return World: Will Chief Investment Officers and Trustees be ready?

Jun 22nd, 2016 | Filed under: Newly Added, Infrastructure, Institutional Investing, Operationally Intensive Real Assets, Institutional Asset Management

By Charles Skorina For executive recruiters like us, that’s a question we’ll have to wrestle with as we present candidates to the boards of institutional asset managers. Two of our investment-management village elders–Bill Gross and Burton Malkiel–say we’re staring down the barrel of a low-return decade.  They’ve been around for aRead More

Somebody Has to Crunch These Numbers: Infrastructure Cash Flow

Jun 5th, 2016 | Filed under: Newly Added, Infrastructure, Operationally Intensive Real Assets, Real Assets

EDHEC Infrastructure Institute-Singapore recently released a paper on the cash flow dynamics of private infrastructure project debt. The gist of the paper is that investors’ ability to understand credit risk in private infrastructure debt turns on advanced statistical techniques. Or, in the authors’ words, “the nature of the data requiresRead More

Infrastructure, Dividends and Path Dependence

Apr 21st, 2016 | Filed under: Newly Added, Infrastructure, Operationally Intensive Real Assets, Real Assets

A new paper from EDHEC Infrastructure Institute-Singapore argues that infrastructure firms represent a unique business model, one with lower revenue volatility, higher payouts, and substantially lower correlation with the business cycle than other firms. An “infrastructure firm” for purposes of this discussion is either a special purpose vehicle created inRead More

An Overview of Real Asset Investing

Aug 26th, 2015 | Filed under: Real Estate, Private Equity, Infrastructure, Risk management, Intellectual Property

Guest columnist Andrew Smith, CAIA, provides an overview of real assets and their commensurate risks and rewards.Read More

PwC Looks Ahead to 2020: Offers a Roadmap for Alternative Investment Managers

Jul 5th, 2015 | Filed under: Hedge Fund Industry Trends, Hedge Fund Strategies, Infrastructure, Technology, Emerging markets

PwC offers a glimpse of a 'day in the life' of a typical compliance analyst in 2015 and again in 2020. As these authors tell it, the day is filled with data, darkness, and drudgery at present, but it will be airy, alliterative, and analytical in another five years. Read More

Farm Land: The Risks & Rewards of Buying Direct

Jun 7th, 2015 | Filed under: Real Estate, Infrastructure, Institutional Investing, Farmland

Guest columnist Andrew Smith, CAIA, examines the risks and rewards of investing directly in farmland.Read More

Some Assets are Hard to Ignore

Apr 23rd, 2015 | Filed under: Currencies, Infrastructure, Hard metals, Alpha Hunters, Alpha Strategies, Gold

Guest columnist Diane Harrison looks at the world of alternatives to alternatives, including stamps, cars, farmland and more...Read More

Gazelles, Exports, and Infrastructure: A View from the UK

Mar 11th, 2015 | Filed under: Infrastructure

The Confederation of British Industry has taken a look at some of the issues that do and should concern investors in the industries of those islands. Among much else, the CBI wants the government to kick-start the private placement market. And to worry more about infrastructure. Read More

Long-Term Infrastructure Debt: The Valuation Issue

Feb 26th, 2015 | Filed under: Infrastructure, Alpha Strategies, Insolvency

Three authors at EDHEC propose a two-step modeling process for the valuation of certain infrastructure debt. One of the key ideas they incorporate is the value of the step-in rights that come when the issuers violate a covenant or otherwise find themselves in technical default. Read More

Down Memory Lane: That WTI-Brent Divergence

Feb 18th, 2015 | Filed under: Commodities, Infrastructure, oil

For one professor, the surprising divergence in the prices of WTI/Brent crude in the period 2010-2012 was a case study in how commodity prices can teach us about supply chain conditions. Faille looks back at his article, and forward past today's calmer but still-fluctuating spread. Read More

The Building of an Infrastructure for Renewables: A Report

Nov 5th, 2014 | Filed under: Private Equity, Commodities, Infrastructure, Socially responsible investing, Alternative energy

In 2012, [as the crude oil price was settling in to $110 and low vol,] the renewables’ infrastructure space for private funds reached an aggregate estimated deal value of $132 billion. In 2013, that fell to $95 billion. It now seems unlikely that 2014 will match last year. Read More

Custodians Helping Customers with Securities as Collateral

Sep 11th, 2014 | Filed under: Infrastructure, Risk management, Insolvency

How address issues of supply/demand imbalance in the world of collateral requirements? Custodians can do a good deal on behalf of their customers here, and are exploring just how much. Read More

Advancing the Infrastructure Investment Narrative

Aug 11th, 2014 | Filed under: Infrastructure, Alpha Strategies, Insolvency

Intuitively, the problem with valuing the debt issued by an private SPE in an illiquid infrastructure project is this: the free cash flows of the SPE aren't easily observed. So how does one go about deriving their present value? Read More

EDHEC: Investors Who Don’t Want to be Mushrooms Need Benchmarks

Jun 16th, 2014 | Filed under: Private Equity, Infrastructure

Investors need benchmarks, especially benchmarks of likely infrastructure return, because the long-term illiquid nature of that investment increases information asymmetry between investors and managers, whereas benchmarks keep this asymmetry bearable. So explains Frédéric Blanc-Brude of EDHEC. Read More

Squeezed Margins and a Move to the Clouds

Jun 12th, 2013 | Filed under: Performance, Analytics & Metrics, Infrastructure

The world of cash equities trading is changing and will continue to change, says Celent. Brokerages will have to outsource in order to reduce costs and restore their margins: and some of the outsourcing will involve "the cloud."Read More

Investing in Britain’s Infrastructure: With and Without Guarantees

Jan 28th, 2013 | Filed under: Infrastructure, Institutional Investing

The bottom line of EDHEC's study is that there is no need to create new public sector liabilities to get private sector institutions to invest in infrastructure. Read More

More than $3 Trillion AUM for Top 100 Alternative Investment Managers

Jul 25th, 2012 | Filed under: Hedge Fund Industry Trends, Real Estate, Private Equity, Hedge Fund Strategies, Infrastructure, Institutional Investing, Alpha Strategies

The survey also asked that the asset managers state where their total assets are invested, using four geographical categories: Europe; Central/North America; Asia Pacific; Other. Commodity funds were easily the most heavily invested in C/NA, to the extent of 94 percent of their portfolios. Private equity funds are 61 percent invested in C/NA, and PE FoFs also have the majority of their portfolios there, at 54 percent.Read More

Pension Funds and Blair’s PFI Legacy

Mar 21st, 2012 | Filed under: Infrastructure, Social investing, Institutional Investing

Britain’s Private Finance Initiative has continued through the administrations since Blair’s, and indeed has inspired emulation across the Channel. At the same time, it has stirred up a good deal of criticism, and in November 2011 the Chancellor of the Exchequer announced a plan to reform the PFI. One of the reform proposals is to seek broader participation by pension funds, or in pale bureaucratic jargon, “access a wider range of financing sources.”Read More

Crumbled Portfolios Look to Rebuild with Infrastructure Investments

Feb 9th, 2012 | Filed under: Infrastructure, Alpha Strategies

Infrastructure is a perpetual investment, whether it's rebuilding old, existing underpinnings in developed markets or building the foundations that turn an emerging nation into a developing one. Preqin looks at this lesser known investment that underpins many alternative portfolios.Read More