Infrastructure debt: project vs. corporate

Infrastructure debt: project vs. corporate

Institutional investors have been steadily increasing their exposure to private infrastructure debt investment in recent years as they search for yield, seek to diversify their portfolios and find a better asset/liability match. Private infrastructure debt can be categorised into two sub-sets; infrastructure project debt and infrastructure corporate debt. As we begin to carve out a distinct asset class for private infrastructure debt the question is; is there a difference between the two?

EDHECinfra has developed the first impartial private infrastructure debt benchmarks to measure the risk adjusted performance of private infrastructure debt, and in particular we have focused on what distinguishes infrastructure project debt and infrastructure corporate debt. Answering these questions is instrumental to establishing the existence of an “infrastructure debt asset class”.

Key questions that will be answered:

• Why do infra proj debt and infra corp debt differ in their performance?
• Infra debt portfolios: are investors investing in project debt or corporate debt?
• Where does infra debt sit in the wider asset mix, eg, is it part of the fixed income portfolio?
• Is infra corporate debt really a new asset class compared to corporate debt?

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