institutional investor investing in infrastructure
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Institutional Investor investing in infrastructure. Tryk Alt+F8 og Afspil auto_open for at vise værktøjslinien til opdatering af automatisk indsat tekst (forfatterinfo, præs.overskrift 2 på masterdias) og til indsættelse af en ny forside. Why invest in light rail. - PowerPoint PPT PresentationTRANSCRIPT
Institutional Investor investing in infrastructure
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Why invest in light rail.
Different ways of
Investing in Infrastructure
Long term interests
Advantages of linking
ownership with project
development
Risks
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Pension funds are natural infrastructure owners
- Returns match long liabilities.
- Stable returns
- Risk adjusted rewards
- Inflation protection
- Diversification
Different investment styles and options
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Investment: direct, co-invest, manager, listed
Entry: green field, growth and mature
Investment style: opportunistic, listed, short term PE, long term PE, buy and hold
Value investors objectives: PE–short term optimisation, current cash flow, inflation correlation
Incentives and investment horizon
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PPP with long term ownership
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PPP model if designed correctly focusing on different parties incentives can give:
1.Disciplined evaluation of project economy.
2.Innovation in project design and construction.
3.Innovation in project expansion and the surrounding next works .
4.Innovation in operation and maintenance .
5.PPP savings – project cost, funding and timing,
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Risks and influence on returns:
Risks that needs to be evaluated and has influence on returns:
- Political risk
- Frameworks conditions
- ”revenue” volatility
- technology
- Incentives and alignment (partners and managers)
why light rail ?
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