Given the record inflows into Infrastructure, there have been broader questions about whether this is sustainable. A recent survey by IPE would indicate "yes" which is backed up by 72% of institutional investors who believed that Infrastructure as an asset class is good value. Interestingly, this is up from 52% from last year's survey. This can only be good news for Infrastructure Funds, and Investors alike who see longevity, stability and growth in the asset class....
| less than a minute read
Is infrastructure too expensive? In a word, no
There is an unprecedentedly large volume of capital earmarked for unlisted real assets, but the common observation today is that the markets are too expensive. But as Holger Kerzel, who is responsible for illiquid assets at Munich Re and ERGO, says, no asset class is cheap anymore. “Infrastructure, in comparison, is attractive.” Most investors seem to agree with this view. Of those investors surveyed by IPE Real Assets’ top 100 infrastructure investors report, 72% said infrastructure was not, broadly speaking, too expensive. The finding marked a big increase on the 52% recorded last year. Further declines in interest rates could well explain why more investors are comfortable with the pricing of infrastructure relative to other asset classes. Another interesting contention is that infrastructure was previously cheap and is now more fairly priced - “a normal process of price discovery”.
/Passle/56d48b663d94740a904e050a/SearchServiceImages/2024-12-16-15-34-52-705-6760489c044a44825effe40e.jpg)
/Passle/56d48b663d94740a904e050a/MediaLibrary/Images/2024-12-02-13-04-52-316-674db074d162aea000d32e55.jpg)
/Passle/56d48b663d94740a904e050a/SearchServiceImages/2024-09-10-08-20-49-450-66e00161097b7a1aca1a437b.jpg)