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Infrastructure Special

Thursday, November 13, 2008
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..

A SQUARE :: 13Nov08 Infrastructure Special
Category Infrastructure
Faculty Michael Barben
Expertise Infrastructure
Author Sona Blessing
Faculty Name
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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