Private infrastructure valuations

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Infrastructure valuations: Adding to investors’ tool kits 

The power of data

Using a large dataset of more than 1,000 transactions we have derived a time series of private infrastructure valuations.

New valuation tool

We have created an "infrastructure cap rate", enabling investors to directly compare infrastructure valuations to those of real estate.

Microeconomic drivers

Infrastructure valuation multiples have a negative relationship with interest rates and a positive relationship with inflation.

Scenario analysis

If inflation subsides but interest rates remain at structurally higher level, there would be more downward pressure on valuations over the coming years.

Asset management

Deep specialist expertise, a focus on revenue growth and improving margins, and a prudent approach to leverage will be crucial to return delivery going foward.

Listen to our podcast

Global infrastructure strategist, Aizhan Meldebek, summarizes insights, including a finding that infrastructure valuation multiples have a negative relationship with interest rates and a positive relationship with inflation.