- Infrastructure in Europe was originally built privately and for profit (for example, railways), was the end of the 19th century. However, mostly nationalized
- 1950-1985 widespread use and expansion – governmental input for economic growth
- From 1990 so-called “unbundling” of infrastructure by the state (partial privatization and liberalization)
- Unbundling: Separation example of power producer and electricity supplier or division of ÖBB in infrastructure and people / freight.
- Since 2000 and up to date further privatization, but also remunicipalisation
- Division of responsibilities between public and private actors (current feed, PPP models in road construction etc.)
- Massive funding shortfall at state actors
Interest from institutional and private investors in alternative investments and infrastructure investments increases significantly. Investments in infrastructure provide safe and predictable cash flows and high value retention. In the next few years huge investments in infrastructure are needed in Europe. Who will finance all this? Banks, which previously held the finance function, excrete increased. Alternatives must and will establish themselves.
The share of infrastructure investments at German investors is still below 1%. This could significantly increase in the future. Very few investors are able to directly participate in infrastructure investments. Securities, funds or similar vehicles therefore offer an attractive way to encourage the potential of the asset class and to meet regulatory requirements.
In the field of infrastructure you can invest in different instruments (equity, mezzanine capital, debt). The features of the instrument differs massively. Investments in infrastructure (equity and debt) can therefore be done in a portfolio, as well as other alternative investments, increasing returns and simultaneously reduce the risk of a portfolio.