Current issue – June 2023
For investment professional and institutional investor use only. Not for use with the public.
Using a large dataset of more than 1,000 transactions we have derived a time series of private infrastructure valuations.
We have created an "infrastructure cap rate", enabling investors to directly compare infrastructure valuations with those of real estate.
Infrastructure valuation multiples have a negative relationship with interest rates and a positive relationship with inflation.
If inflation subsides but interest rates remain at a structurally higher level, there would be more downward pressure on valuations over the coming years.
Deep specialist expertise, a focus on revenue growth and improving margins, and a prudent approach to leverage will be crucial to return delivery going forward.
MARKET PERSPECTIVES WEBINAR REPLAY
This year could present economic challenges, leading institutional investors to seek investments that aim to deliver inflation protection, yield, and portfolio diversification. Watch the Market Perspectives webinar recording to hear our real asset experts discussing opportunities in infrastructure, global real estate, and agriculture.
Verena Lim, Macquarie Asia CEO and Head of Asia infrastructure, joins Daniel McCormack to review the growth of infrastructure investment across Asia. Discussion touches on common institutional investor questions and lessons learned by large infrastructure investors in Asia through recent decades.
Daniel McCormack, CFA
Head of Thought Leadership
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