All this points to a market in which it will become increasingly difficult to deploy capital and equally difficult to acquire fairly valued assets.

Given the attributes of the unlisted infrastructure market noted above, we would expect that any current allocations to infrastructure are likely to take some time to deploy (always assuming asset managers display a level of discipline, in terms of both pricing and asset type). In the period during which this allocated capital is not invested (directly or through managers) in infrastructure assets, it will be sitting elsewhere in an institution’s liquid assets portfolio, most likely in a combination of equities, cash and bonds.

We make the case in this paper that listed infrastructure provides investors with an alternative investment opportunity for undeployed capital which we believe could provide a significantly better fit to their desired unlisted infrastructure exposure than the alternatives.

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