PT  - JOURNAL ARTICLE
AU  - Noël Amenc
AU  - Frédéric Blanc-Brude
AU  - Abhishek Gupta
AU  - Tim Whittaker
TI  - An Infrastructure Investment Primer: From Valuation to Allocation and Manager Selection
AID  - 10.3905/jpm.2022.1.412
DP  - 2022 Aug 31
TA  - The Journal of Portfolio Management
PG  - 117--202
VI  - 48
IP  - 9
4099  - https://pm-research.com/content/48/9/117.short
4100  - https://pm-research.com/content/48/9/117.full
AB  - Infrastructure investments can play several important roles in the portfolio, from generating yield and income to creating diversification and matching or hedging liabilities. They are also relatively large and illiquid and, as such, present valuation and risk measurement challenges. Stale, biased, and limited contributed data have long left investors and regulators only able to make educated guesses. Recent developments in data collection and asset pricing techniques for private assets allow granular market-based valuations and risk-adjusted return calculations. This article introduces standard definitions for infrastructure investments and styles as well as a modern and robust asset pricing framework for the production of fair valuations and useful risk measures. It also presents stylized empirical facts based on 20 years of data for the risk-adjusted performance of unlisted infrastructure equity, systematic and extreme risks, asset allocation, and fund manager selection.