We think a globally and sector diversified portfolio of green-field and brown-field assets can achieve a blended return that ranges from 9% to 13% p.a. over a period of 5 to 8 years..
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| A SQUARE :: 13Nov08 Infrastructure Special |
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Category
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Infrastructure
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Faculty
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Michael Barben
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Expertise
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Infrastructure
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Author
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Sona Blessing
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We do not believe that the credit crisis has impacted the scope or the potential of the infrastructure opportunity in the medium-to-long-term. In the short-term the lack of availability of financing may delay and impede infrastructure projects but this does not change the underlying supply and demand factors supporting this asset-class.
On the contrary we believe that the credit crisis will ultimately prove beneficial for private infrastructure returns as it has alleviated the ‘excess capital problem’ that built up in 2007 - when significant equity fund raising had occurred, out-pacing the growth of the opportunity set at the time.
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