“For the past 15 years infrastructure investment has been the preserve of large sophisticated investors. It is rapidly becoming more mainstream, and asset owners of all sizes are considering investing in it. Originally confined to private equity or debt strategies, the label “infrastructure” can now be found on numerous financial products. We argue that not all products labelled as such are adding value to the portfolio of an institutional investor. In particular, the fast-growing listed infrastructure sector is shown by peer-reviewed academic research to offer zero additional valueto an institutional portfolio. We call this fake infrastructure.”
Noel Amenc and Frederic Blanc-Brude write about the dangerous rise of “fake infra” in The Financial Times.
