12 April 2017

Benchmarking Long Term Investment in Infrastructure

Written by EDHEC Risk Institute-Asia, Frédéric Blanc-Brude
12 April 2017

Matching the huge demand for capital investment in infrastructure projects around the world with the available supply of long-term funds by institutional investors -- be they pension funds, insurers or sovereign wealth funds -- is a major challenge in infrastructure financing. This report discusses the need and propose an approach to benchmark long-term investments in infrastructure, where longterm investment simply refers to any unlisted and illiquid asset.

The report first highlights the reasons why benchmarking long-term infrastructure investments has become a sine qua non to match the supply and demand of long-term capital, improve asset allocation outcomes for investors and support the development of the economy. It also proposes a roadmap detailing the steps to create benchmarks of long-term infrastructure investments. Drawing on recent research, it also discusses how this roadmap can be implemented.

Publication Date: 06.2014