Sarah Tame speaks at the IPFA Webinar on Equity Indices addressing the follwoing topic:
Benchmarking the private infrastructure equity market, how and why?
Three years ago, a team of researchers at EDHEC business school endeavoured to create a reference index of the financial performance of private infrastructure investments. It took that long to collect millions of data points about hundreds of private infrastructure firms and SPVs, design asset pricing models that could handle this data and produce the risk-adjusted performance metrics that large institutional investors and prudential regulators have been lacking to better understand the role of the infrastructure ‘asset class’. This webinar present the approach taken to collect data and build a representative market index, produce quasi-market valuation that are not plagued by the usual ‘stake price’ issues found in private equity, and build indices that can be used for asset allocation, performance monitoring and risk model calibration.