The future of infrastructure as an asset class

With multilateral agencies gearing up to complement government efforts, we will see a more resilient infrastructure sector post-Covid.

Published Mon, Jun 1, 2020 · 09:50 PM

Infrastructure

THE infrastructure sector has strong correlations to economic growth and employment creation, both in developed and developing countries. While governments conceptualise and drive the infrastructure in a country, given the size of the challenge, private sector developers, multilateral agencies (MLAs), institutional investors such as pension funds and insurance companies have increasingly become important participants in the infrastructure growth story. The sector is viewed as a long-term funds deployment destination by institutional investors given the annuity nature of such projects.

In 2018, the G-20 launched a roadmap to infrastructure as an asset class, to broaden the sector's appeal. The report highlighted that while the private long-term savings in the hands of institutional investors recorded an all-time hig…