Looking ahead to SuperReturn Infrastructure 2018 in September, we explore the key themes that are shaping the infrastructure market today.
Why has infrastructure investing become more prominent?
A pivotal reason is the increased global need for infrastructure spending to support ageing or expanding facilities, and public-sector interest in using the private sector to enhance efficiency and taxpayer value. The persistently low interest rate environment has increased investor appetite for infrastructure investment.
The National Infrastructure Commission, set up by the government to provide expert, impartial advice to the government is currently developing an assessment to analyse the UK’s long-term economic infrastructure needs, outline a strategic vision over the next 30 years and set out recommendations for how identified needs should be met.
Hear Bridget Rosewell OBE, Commissioner for the NIC, give an overview of this strategic vision and priorities, and hear the responses from the CEOs of InfraRed Capital Partners, Anton Infrastructure and Meridiam and the Head of infrastructure at Hermes Investment Management on how realistic these objectives are in the state of the union panel discussion.
How is digitalisation revolutionising the energy sector?
The infrastructure/energy landscape is shifting, as we continue to venture into an era of huge technological change. Investors are constantly striving to utilise technology to improve infrastructure productivity. Listen to Tom Murley, Founder and Principal Consultant, Two Lights Energy Advisors as he explains how technology is driving the confluence of cost and sustainability to provide new investment models and market opportunities.
A panel of experienced investors will also discuss the digitalisation of the energy sector, answering the questions that are front of mind for investors:
- What does digitalisation mean for infrastructure investing?
- Where do the best opportunities lie for investors?
- What are the risks in this new and dynamic world?
How are institutional investors approaching the closed-end fund market?
Infrastructure investing has become an area of increasing global focus among institutional investors. It remains at a nascent stage for many of the smaller investors as they shift from treating it as an investment niche to an independent asset class. This could be because the history of infrastructure funds is relatively short and shallow. As a result, there remains little vintage year comparison data on individual fund performance. This investment sector has yet to develop a full set of “best practices,” with benchmarking, for example, still in flux.
Hear Sarah Tame, Associate Director, EDHEC Infrastructure Institute offer the latest data in her presentation on benchmarking private infrastructure performance with the added challenges of a relative lack of vintage year comparison data.
What are LPs looking for?
Some pension funds, insurance companies, and sovereign wealth funds are now investing in infrastructure assets more directly, rather than just buying listed shares of utilities and other infrastructure corporations. The causes of this change include the success of similar models in private equity and venture capital, the willingness to hold illiquid assets for long periods, and perceived governance issues around listed corporations.
So, what are the main drivers of investor interest in infrastructure? Hear perspectives from experienced investors from CPPIB, GLIL, Pensions Infrastructure Platform, Manulife, PGGM, and Lothian Pension Fund amongst others, as they discuss:
- What are the pros and cons of direct and co-investing?
- Will too much money coming into the market will hurt investors’ returns?
- Are we nearing the top of the market cycle?
- What term structures, strategies or industry sectors are of most interest?
- To what extent are investors concerned about geopolitical upheaval?
Private equity infrastructure has never been more buoyant – and the CEOs and global heads from the leading global infrastructure firms are gathering in London this September to share their invaluable insights with you. Get the full coverage at SuperReturn Infrastructure in London on 17th - 19th September 2018 – we look forward to seeing you there.