Institutional Investors and Infrastructure Investing

Abstract Institutional investors expect infrastructure to deliver long-term stable returns but gain exposure predominantly through finite-horizon closed private funds. The cash flows delivered by funds display similar volatility and cyclicality as other equity investments, their performance similarly depends on quick deal exits. Despite weak risk-adjusted failure match the supposed characteristics of assets, have received more commitments over time, particularly from public investors. Public institutional perform worse than ESG preferences regulations explain 25$\%$–40$\%$ increased allocation 30$\%$ underperformance.