Private Equity
Asset class guide
EducationAsset class guide
Private Infrastructure
Private infrastructure raises capital to build, own and operate assets such as energy, transport, utilities and digital networks.
Introduction to private infrastructure
What you need to know
Structure
Closed-ended or open-ended fund, or single-asset vehicle.
Strategies
Core, core-plus, value-add and greenfield.
Investors
Pensions, insurers, sovereign funds, family offices, private wealth.
Basis of the case
Contracted or regulated revenue and the life of the asset.
How is private infrastructure raised?
Infrastructure capital is committed for long periods. Allocators review it on that basis.
Holding periods are generally longer than in private equity, which suits investors with long-dated obligations.
From operating assets to new construction
Operating assets
Contracted or regulated revenue.
Assets that need investment
Capital to grow the asset.
Greenfield
New construction.
Which sectors does it cover?
Sectors include energy and the energy transition, transport, utilities, digital infrastructure and social infrastructure.
Energy
Including the energy transition.
Transport
Including ports.
Utilities
Including power lines.
Digital
Including networks.
Social
Social infrastructure such as hospitals and schools.
Who invests in private infrastructure?
The investor base is led by pension funds, insurers and sovereign wealth funds. Family offices and private wealth platforms also invest, through funds and through co-investments in single assets.
- Pension funds
- Insurers
- Sovereign wealth funds
- Family offices
- Private wealth platforms
Who does the capital serve?
Infrastructure capital pays for the power lines, ports and networks that people use every day.
Holding periods run longer than in private equity, which suits pension funds and insurers with long-dated obligations to their members and policyholders.
What do institutional allocators look at?
Allocators decide on evidence. We help you present it.
01
Revenue and contracts
Where the revenue comes from, how much of it is contracted or regulated, who the counterparties are, and how long the contracts run.
02
Regulation and policy
Which permits, concessions and regulations the assets depend on, and how a change in policy would affect them.
03
Operating and construction record
What the team has built, operated or improved before, and how those projects performed against budget and timetable.
04
Horizon and exit
How the holding period matches the investor's own horizon, and how investors can exit over the life of the vehicle.
Private Infrastructure: the guide as a PDF
The same guide in print form, with the team and our contact details. For your own reading or to share with your partners.
Important information
For information only. This guide describes general practice in private infrastructure fundraising, which varies between managers and allocators. It is not an offer or solicitation to buy or sell any security, and it is not investment, legal or tax advice.
