There are five key strategies for infrastructure investment, each with varying levels of risk: core, core-plus, value-added, opportunistic, and debt.
1. Core
This strategy targets essential assets with no operational risk and assets that are typically already generating returns. These are usually secondary-stage assets, in developed countries with transparent regulatory and political environments. Key features of the underlying assets include monopoly position, demonstrable demand, and long-term stable cash flows that are forecastable with a low margin for error.
2. Core-Plus
Targeting assets in undeveloped markets, but with little-to-no construction risk. These are usually secondary stage or can be brownfield if in a developed market. These assets may also have higher sensitivity to the economic cycle and may be exposed to fluctuations in demand, although some will include features that act to limit risks, including long-term contracts, long-term government or regulatory price support, and high barriers to entry for competitors.
3. Value Added
This is a moderate-to-high-risk strategy targeting assets that require enhancements. The focus will be in adding value by growing demand for the asset. Assets are typically greenfield or brownfield, potentially involving new or unproven technologies that do not have pricing power at time of investment.
4. Opportunistic
Opportunistic strategies have the highest risk/return profile of the five strategies. Projects targeted will be fairly risky and assets may need to be developed or constructed in their entirety. The focus will be less on generating stable cash flows, and more on achieving capital growth in the value of the underlying asset.
5. Infrastructure Debt
This strategy involves financing infrastructure assets through organizing or acquiring loans secured by those assets. This may include mezzanine debt, preferred equity or senior loans. While the risk exposure of the strategy will depend on the type of debt provided, most infrastructure assets are typically financed by senior debt and have simple capital structures meaning they tend to be relatively low risk.
FAQs
Associates: $150K – $300K total compensation (50/50 base/bonus) Vice Presidents: $250K – $500K. Directors: $400K – $900K.
What is the difference between real estate and infrastructure PE? ›
Short vs. Long Term: Real estate investments can offer quicker returns through rental income and property sales, while infrastructure investments typically provide long-term, consistent returns.
What is the typical duration of an infrastructure fund? ›
In addition, long-term infrastructure funds can have terms of 15 to 20 years or more. A value-add or opportunistic infrastructure fund, however, is deriving returns primarily from capital appreciation of the underlying assets.
How big is the infrastructure asset class? ›
Private infrastructure assets under management (AUM) have surpassed $1 trillion and are expected to increase to more than $3 trillion by 2035, driven by growing demand from investors for defensive, stable asset classes2.
What is the highest salary in private equity? ›
Private Equity Associate salary in India ranges between ₹ 3.0 Lakhs to ₹ 45.0 Lakhs with an average annual salary of ₹ 11.8 Lakhs. Salary estimates are based on 145 latest salaries received from Private Equity Associates.
How much does a VP in private equity make? ›
Vice President Private Equity Salary
| Annual Salary | Monthly Pay |
|---|
| Top Earners | $244,500 | $20,375 |
| 75th Percentile | $190,000 | $15,833 |
| Average | $157,532 | $13,127 |
| 25th Percentile | $115,000 | $9,583 |
Choosing between real estate vs. equity investments in India depends on your financial goals, risk tolerance, and investment horizon. Real estate offers the advantage of tangibility and steady rental income, while equity investments provide liquidity, diversification, and the potential for higher returns.
Is infrastructure considered real estate? ›
Both considered real assets, infrastructure and commercial real estate investments share many characteristics at the asset level, such as their potential ability to return relatively consistent cash flows.
What do PE houses do? ›
Private equity describes investment partnerships that buy and manage companies before selling them. Private equity firms operate these investment funds on behalf of institutional and accredited investors.
What is the best infrastructure fund? ›
Here are the best Infrastructure funds
- iShares US Infrastructure ETF.
- SPDR® S&P Global Infrastructure ETF.
- ProShares DJ Brookfield Global Infras.
- Global X US Infrastructure Dev ETF.
- FlexShares STOXX Global Broad Infras ETF.
- iShares Global Infrastructure ETF.
- iShares Environmental Infras & IndstrETF.
The average infrastructure fund salary in the United Kingdom is £75,000 per year or £38.46 per hour. Entry level positions start at £54,590 per year while most experienced workers make up to £93,900 per year.
What does infrastructure private equity do? ›
An infrastructure fund is simply a form of sector-specialised private equity fund that only invests in infrastructure - in much the same way as a venture capital fund might only invest in technology. Infrastructure has typically been a governmental responsibility - especially in sectors like transport, water.
What is the most profitable asset class? ›
Which asset class has the best historical returns? The stock market has proven to produce the highest returns over extended periods of time. Since the late 1920s, the compound annual growth rate (CAGR) for the S&P 500 is about 6.7%, assuming that all dividends were reinvested and adjusted for inflation.
What is the world's largest infrastructure fund? ›
For the 12th consecutive year, Macquarie Asset Management has topped Infrastructure Investor's ranking of the world's largest infrastructure managers by direct investment capital raised over the past five years.
What is the most valuable asset class in the world? ›
At an estimated value of over $300 trillion, land and real estate remain the world's most valuable asset class yet it is directly exposed to climate change and demographic decline.
How much do infrastructure private equity analysts make? ›
Antin Infrastructure Partners Salary FAQs
The average salary for an Intern Private Equity Analyst is £60,734 per year (estimate) in United Kingdom, which is 155% higher than the average Antin Infrastructure Partners salary of £23,778 per year (estimate) for this job.
What does a private equity associate make? ›
The Private Equity Career Path
| Position Title | Typical Age Range | Base Salary + Bonus (USD) |
|---|
| Associate | 24-28 | $150-$300K |
| Senior Associate | 26-32 | $250-$400K |
| Vice President (VP) | 30-35 | $350-$500K |
| Director or Principal | 33-39 | $500-$800K |
2 more rowsFind Salaries by Job Title at Global Infrastructure Management
| Job Title | Total Pay Base | Additional |
|---|
| Private Equity Associate 1 Salaries submitted $168K-$293K $152K | $68K 0 open jobs | $168K-$293K $152K | $68K |
| Business Analyst Intern 1 Salaries submitted $67K-$96K $74K | $6K 0 open jobs | $67K-$96K $74K | $6K |
18 more rowsFor the vast majority of first-year private equity associates, the base salary is around $135k to $155k. Then, based on fund performance, bonuses tend to range from 100% to 150% of the base salary.
