Perspectives

The Different Types of Strategies in Private Infrastructure

 

Private infrastructure strategies span a spectrum of risk and return. 

Core focuses on operating assets with predictable cash flows – like regulated utilities, toll roads, and cell towers. 

Core Plus adds moderate growth by expanding or enhancing existing assets – such as increasing solar capacity or upgrading grid technology. 

Value Add involves more transformational improvements – for example, repurposing rail terminals or modernising water systems, which often require active management. 

Opportunistic strategies take on higher risk, whether that’s developing new – or greenfield – infrastructure, or entering emerging markets with unproven technologies. 

Distressed investing seeks to turn around troubled assets, such as stalled energy facilities. 

Debt strategies provide financing to infrastructure assets and typically sit higher in the capital structure than equity. 

Each of these strategies help power economies, connect communities, and shape the infrastructure of tomorrow.