Infrastructure Funds – Key Features For NAV Facilities

This article looks at the distinguishing features of infrastructure funds from a credit perspective, their typical funding requirements, and the potential lessons for NAV facilities to private equity funds.

While there remains some debate on the precise limits on infrastructure as an asset class, for the purpose of this article we will use infrastructure funds to refer to any fund established for the purpose of investing in a portfolio of assets comprising investments in PPP, energy (including renewables) and/or infrastructure projects that are characterised by their long-term revenues. Infrastructure funds commonly take the form of a limited partnership, but also include a number of publicly listed companies that have been spun-off by the major multinational construction companies over the last 10-15 years to hold their operational projects.