Insights

This post is the editorial of the June 2021 EDHECinfra Newsletter (Volume 5 issue 1)  Infrastructure investment is evolving from a niche alternative asset class into a fully-fledged investment sector and value chain. As this evolution takes place, the need for data and analytics is also growing rapidly for investors, managers, consultants and financial service providers. Access to the best

With the support of LTIIA, EDHECinfra recently published a new paper exploring the nature and drivers of the issue of Volatility of Unlisted Infrastructure Equity Investments. We spoke with Thierry Déau, Chairman of LTIIA and CEO of Meridiam, about the paper’s findings and its industry relevance. 1. What was the main reason to sponsor the research paper “The volatility of

In this paper, we examine the drivers of the volatility of unlisted infrastructure equity investments. Our analysis uses the EDHECinfra database of unlisted infrastructure equity investment data, which covers hundreds of firms over 20 years and a new approach to measure the market value of these investments over time.

…but can investors understand the risks?  With new data that accurately describes the yield and risks of infrastructure investments, institutional investors can embrace infrastructure investment more easily. This article was originally published by The Economist in March 2021. Governments around the world are eyeing infrastructure as a post-Covid economic panacea. The ability of infrastructure projects to stimulate short-term employment and

This article was originally published in the Wall Street Journal in April 2021. The impact of Covid-19 lockdowns on the airport sector highlights a dilemma about how investors approach the valuation of private, illiquid infrastructure assets. On the one hand, there has been a clear, large shock to the revenues of airports that cannot leave the value of these companies

This article was first published in the Financial Times in April 2021. Unbelievably Smooth If one examines the annual reports of many unlisted infrastructure equity funds a surprising pattern appears: given the level of returns reported, the risk implied by the volatility of the valuations is surprisingly low, as shown in table 1. For that level of volatility, over a