Insights

The valuations of unlisted assets anchor everything from capital-allocation and risk-management decisions and regulatory reporting. Yet, despite the principles-based guidance of IFRS 13, ASC 820, and the IPEV Guidelines, day-to-day practice remains opaque and highly discretionary. A recent paper from EDHEC Infra & Private Assets provides the first large-scale empirical portrait of those practices. Drawing on a global survey of

The EDHEC Infrastructure & Private Assets Research Institute (EIPA) has submitted detailed comments to the House Financial Services Subcommittee on Capital Markets regarding the potential inclusion of private market investments in 401(k) and other retirement vehicles. EIPA’s analysis underscores that while private equity can offer significant diversification benefits, it also introduces complex risks that require robust safeguards to protect individual

The growth in private assets Since 2012, EY estimates that private assets increased their Assets Under Management (AUM) from US$9.7 trillion to US$24.4 trillion by the end of 2023.1 This growth, has seen private managers tap different sources of capital. Starting with traditional investors such as endowments, pension funds and insurance companies, the managers have innovated, identifying permanent sources of

CAPM may be ‘one of the founding frameworks of modern finance’, but for determining the net asset value of unlisted infrastructure it is terribly inadequate. Frédéric Blanc-Brude, the director of the EDHEC Infrastructure Institute explains why and offers an alternative. Originally published in Infrastructure Investor. When reporting the NAV of unlisted assets like infrastructure using discounted cashflows, best practice consists

This is a grim headline, but with the economic shifts over the last two years, we might be seeing a more difficult market for infrastructure investment. From our perspective, we are observing some interesting shifts in the market. Firstly, despite the evidence that inflation may be cooling in major economies, there is evidence that interest rates might be higher for

Can you really lose GBP1.5Bn in a couple of quarters when investing in a water utility? Investments in infrastructure like water utilities are very often presented as ‘boring’, slow-moving, low-risk assets, that also happen to be cash cows. That latter point is true, as my colleagues have shown in previous research. The rest is wishful thinking at best, but mostly