Infrastructure is an asset class that emerged in the mid-1990s and has continued to gain greater acceptance from institutional investors over time. The market is now over US$100 billion strong in terms of capital raised per year, with more than 100 funds closed annually. (1) Infrastructure is typically considered in a portfolio context alongside other private markets asset classes, such as private equity and real estate. However, infrastructure investments share certain attributes that make them unique and are meant to provide steady, reliable returns across a wide variety of economic conditions. Returns are generally inclusive of a cash yield, which is beneficial for investors who seek income as well as total return.
1 Infrastructure Investor 2020 fundraising statistics.