june, 2016

16jun2:00 pm6:00 pmInfrastructure Investment Masterclass 2016 (Singapore)Understanding the infrastructure asset class2:00 pm - 6:00 pm SGT Capella, 1 The Knolls, Sentosa Island, 098297, Singapore Event Organized By: EDHEC Infrastructure Institute-Singapore speaker(s): Frederic Blanc-Brude with the support of: Eastspring


Frederic Blanc-Brude

Event Details

Download the brochure

This masterclass aims to provide an overview of the fundamental mechanisms at play in infrastructure investment from the point of view of an institutional investor aiming to build a portfolio of private infrastructure debt or equity investments and to benchmark the risk-adjusted performance of such a portfolio. The first part begins with a deep-dive into the financial economics of infrastructure businesses and identifying the risk factors that can be expected to explain the performance of such assets.

The class includes a review of the all existing academic research on the subject but also features new cutting edge research on the cash flows of infrastructure businesses produced using the unique EDHECinfra database of infrastructure investments, which goes back 15 years. Students will learn about the unique characteristics of infrastructure firms and how they may be categorised by groups of risk factors that explain volatility and covariance. The second part focuses on advanced techniques to better measure the performance of private infrastructure equity and debt investment, taking into account their dynamic risk profile, embedded options and private nature. It details novel approaches to cash flow modelling (partly inspired from robotics) and discounting that allows building better models of teh risk-adjusted performance of infrastructure investments.


Part 1 (90 min): Risk factors and risk profiles of private infrastructure investments

The Nature of Infrastructure Investment: from concrete to contracts
Learning objectives:

  1. Develop an understanding of the financial economics of infrastructure and the contractual nature of infrastructure investment
  2. Learn about the systematic drivers of risk in infrastructure projects (why project returns might co-vary)
  3. Review existing empirical evidence of risk pricing in private infrastructure investments

Business models and business cycles for infrastructure and non-infrastructure firms
Learning objectives:

  1. Learn about the most relevant ways to categorises infrastructure firms and projects by underlying business models
  2. Make robust comparisons revenue and profit volatilities and correlations with non-infrastructure firms
  3. Understand the predictability and relative size dividend payout policies in infrastructure and non-infrastructure assets

30-minute break

Part 2 (90 min): Valuation and benchmarking of private infrastructure equity and debt investments

Long-term valuation of privately-held infrastructure equity
Learning objectives:

  1. Review the literature on private infrastructure equity valuation and understand its limits
  2. Learn about a robust approach to estimate time-varying discount factors
  3. Understand applications to private market valuations

Credit risk, cash flow dynamics and valuation of senior infrastructure project debt
Learning objectives:

  1. Understand structural credit risk models for infrastructure project finance
  2. Learn about estimating cash flow dynamics using machine learning
  3. Learn about the pricing embedded options in project finance debt to predict recovery rates

with the support of

ES_Brand Marque CMYK -with endorsment


(Thursday) 2:00 pm - 6:00 pm SGT



1 The Knolls, Sentosa Island, 098297, Singapore


EDHEC Infrastructure Institute-Singaporekaren.sequeira@edhec.edu One George Street, #15-02, Singapore 049145

with the support of


(c) 2016, EDHEC Infrastructure Institute-Singapore
is part of EDHEC Business School, accredited by