In the first EDHEC Climate + Finance special issue of the supplement, we contribute an article analysing the outperformance of low-carbon energy infrastructure investments over the past decade.
Infrastructure Strategy 2023 – Building the Green Hydrogen Economy
The BCG-EDHECinfra study of the risks facing infrastructure investors and the returns that their investments generated found that asset owners did better than asset managers in 2022. The study also found that success in the current environment requires fresh approaches to investing and value creation.
The Denominatrix Effect
Why suffer at the hands of the denominator effect when the true market value of private assets is available? When one asset class in a portfolio underperforms (or outperforms) markedly, the resulting change in the total portfolio value (the denominator) can make allocations to other asset classes significantly overweight (or underweight). Indeed, strong reported performance in 2021 pushed several asset … Read More
Energy Crises and Infrastructure Investing
This year has been a very interesting one for infrastructure investors, especially energy infrastructure investors. The war in Ukraine led to massive dislocation in energy markets, this combined with outages in France nuclear power plants and Norwegian hydro has resulted in the price for electricity increasing significantly. In response, consumers have reduced their demand for electricity, governments in Europe have … Read More
Insights by Vincent Levita on market shocks and infrastructure investment
With the support of LTIIA, EDHECInfra recently published a new paper “Is Infrastructure Shockproof?” examining the resilience of infrastructure equity investments during market downturns, 2000-2022. We spoke with Vincent Levita, Chairman of LTIIA and CEO of InfraVia Capital Partners, about the paper’s findings and its industry relevance. In the latest research paper “Is Infrastructure Shockproof?”, why was it important for … Read More
Carbon Footprints and Financial Performance of Transport Infrastructures: The Case of Airports
We develop a methodology to estimate the carbon footprint of thousands of airport infrastructures around the world and test for the existence of a relationship between carbon emissions and realised or expected returns in the private airport investment sector.