| When Australia pioneered infrastructure as an asset class in the 1990s, the first generation of projects produced internal rates of return (IRRs) of 30% to 35%. Those returns, combined with the low correlation to equities and bonds, have made infrastructure very popular among global institutions with long-term mandates, from Asian sovereign wealth funds to Middle East family offices to Canadian pension funds.
The Queensland Investment Corporation, for example, a domestic sovereign wealth fund, has raised capital for a global infrastructure fund. The head of that team, Ross Israel, said that the fund could not invest in purely greenfield projects...............................................Full Article: Source
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