The UK has for many years been heralded as a treasure trove of investable infrastructure assets. Core infrastructure equity has been generating double-digit internal rates of return and, according to ratings agency Moody’s, there has only been one instance over a 34-year period of an A-rated UK infrastructure bond defaulting However, sceptics fear this may be coming to an end because of three potential developments. Firstly, the opposition Labour Party has stated its wish to renationalise all infrastructure assets should it come to power. Secondly, water regulator Ofwat and energy regulator Ofgem have said publicly that infrastructure asset owners should not be making such large profits off the back of their investments into core UK assets. The third development on the horizon is currency volatility could scare off foreign investors seeking the low-volatility and highly predictable cashflows infrastructure usually offers

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