TY  - UNPD
A1  - Andonov, Aleksandar
A1  - Kräussl, Roman
A1  - Rauh, Joshua
T1  - The subsidy to infrastructure as an asset class
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 599
N2  - We investigate the characteristics of infrastructure as an asset class from an investment perspective of a limited partner. While non U.S. institutional investors gain exposure to infrastructure assets through a mix of direct investments and private fund vehicles, U.S. investors predominantly invest in infrastructure through private funds. We find that the stream of cash flows delivered by private infrastructure funds to institutional investors is very similar to that delivered by other types of private equity, as reflected by the frequency and amounts of net cash flows. U.S. public pension funds perform worse than other institutional investors in their infrastructure fund investments, although they are exposed to underlying deals with very similar project stage, concession terms, ownership structure, industry, and geographical location. By selecting funds that invest in projects with poor financial performance, U.S. public pension funds have created an implicit subsidy to infrastructure as an asset class, which we estimate within the range of $730 million to $3.16 billion per year depending on the benchmark.
T3  - CFS working paper series - 599 
KW  - Infrastructure
KW  - Public pension funds
KW  - Institutional investors
Y1  - 2018
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/47036
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-470361
UR  - https://www.ifk-cfs.de/fileadmin/downloads/publications/wp/2018/CFS_WP_599.pdf
IS  - September 2018
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -