The Size Factor
Infrastructure investors can benefit from the opportunities in the mid-market space to achieve potentially higher returns
13 August 2024
Energy Transition Infrastructure - The Size Factor
- Capital raised for private market infrastructure funds has grown precipitously over the past decade, with investments overwhelmingly favouring large-scale funds
- This has created an environment of competition among large-scale funds for large-scale investment opportunities. As a result of this competition, entry valuations have been driven higher over time
- As a result, its our view that mid-market assets pose two major benefits for investors:
- They provide returns greater than larger-scale assets over the long-term
- The offer diversification benefits, through providing assess to parts of the market off-limits to those which invest only in larger funds