Pathways - June 2023

Private infrastructure valuations: Relative value, macroeconomic drivers, and implications for investors

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*For investment professional and institutional investor use only. Not for use with the general public.

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.

MARKET PERSPECTIVES WEBINAR REPLAY

The right horse for the current course

This year could present economic challenges, leading institutional investors to seek investments that aim to deliver inflation protection, yield, and portfolio diversification. Watch the Market Perspectives webinar recording to hear our real asset experts discussing opportunities in infrastructure, global real estate, and agriculture.

                                                                                                                                                                                                                                                                                                                      

PATHWAYS PODCAST

Asia infrastructure

Verena Lim, Macquarie Asia CEO and Head of Asia infrastructure, joins Daniel McCormack to review the growth of infrastructure investment across Asia. Discussion touches on common institutional investor questions and lessons learned by large infrastructure investors in Asia through recent decades.

 

                                                                                                                                                                                                                                                                                                                      

Pathways is our flagship private markets thought leadership publication. It is focused on two main subjects: (1) real assets investing and (2) sustainability and the path to net zero and what that implies for investors.


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*For investment professional and institutional investor use only. Not for use with the general public.