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Insights

Opinion pieces from the team, and uses cases covering private markets, infrastructure investment, climate change, social risk, and more.

Featured image for “Bloomberg: Hurdles not set in the interest of investors in funds”

Bloomberg: Hurdles not set in the interest of investors in funds

This article was originally published by Bloomberg in April 2021. The Bottleneck Fund raising by infrastructure fund managers is at an all-time high but so is the amount of funds raised that has not been invested. The amount of so-called ‘dry powder’ has been multiplied by three in ten years and now stands at more than USD200bn. While infrastructure investment

Featured image for “FT: Bad data means lower allocations to infrastructure”

FT: Bad data means lower allocations to infrastructure

Investors have been at pains to benchmark unlisted infrastructure investments. However, using better data is now possible. This article was originally published in the Financial Times in April 2021. Policy Makers still Await Infrastructure Investors Infrastructure investment is at the heart of many governments’ post-Covid recovery plans, including a green new deal in the US, UK or EU. All such

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Wall Street Journal: The Price of Inertia

High hurdle rates are not in the interest of investors in infrastructure funds. This articles was first published in the Wall Street Journal in April 2021. Fund-raising by infrastructure fund managers is at an all-time high, but so is the amount of funds raised that has not been invested. The amount of so-called ‘dry powder’ has trebled in 10 years

Featured image for “FT: Ignorance is not bliss: can investors ignore losses in airports?”

FT: Ignorance is not bliss: can investors ignore losses in airports?

The risk of default in airports has increased, as has the risk of bankruptcy. This piece was originally published in the Financial Times and the Wall Street Journal in April 2021. Can Covid Impact Long Term Investments? The impact of COVID-19 lockdowns on the airport sector highlights a dilemma about how investors approach the valuation of private, illiquid infrastructure assets:

Featured image for “FT: How exposed are infrastructure investors to inflation risk”

FT: How exposed are infrastructure investors to inflation risk

The sensitivity of the value of unlisted infrastructure equity investments to changes in the discount rate is about 10% on average. This article was originally published in the Financial Times in April 2021. A Partial Inflation Hedge A return of inflation could unveil a significant risk exposure for investors in infrastructure. This asset class is often presented as an inflation

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Towards a Scientific Approach to ESG for Infrastructure Investors. A Publication of the EDHEC Infrastructure Institute

New research finds that ESG reporting schemes for infrastructure investors are not focused on measuring risks despite upcoming SFDR requirements to do so. A new publication of the EDHEC/Natixis Research Chair on ESG and infrastructure investment, “Towards a Scientific Approach to ESG for Infrastructure” reviews and maps major existing ESG schemes used by investors and finds that they are primarily