Pathways

Delivering innovative ideas and insights

Current issue – June 2023

Private infrastructure valuations: Relative value, macroeconomic drivers, and implications for investors

For investment professional and institutional investor use only. Not for use with the public.

Infrastructure valuations: Adding to investors’ tool kits

The power of data

Using a large dataset of more than 1,000 transactions we have derived a time series of private infrastructure valuations.

New valuation tool

We have created an "infrastructure cap rate", enabling investors to directly compare infrastructure valuations with those of real estate.

Macroeconomic drivers

Infrastructure valuation multiples have a negative relationship with interest rates and a positive relationship with inflation.

Scenario analysis

If inflation subsides but interest rates remain at a structurally higher level, there would be more downward pressure on valuations over the coming years.

Asset management

Deep specialist expertise, a focus on revenue growth and improving margins, and a prudent approach to leverage will be crucial to return delivery going forward.

MARKET PERSPECTIVES WEBINAR REPLAY

Destination unknown: Transport sector volumes in the post-COVID-19 era

Our recent Market Perspectives webinar focused on the outlook for volumes in the transport sector, including the long-term impacts of the pandemic and supply chain transformation.

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PATHWAYS PODCAST

Asia infrastructure

Verena Lim, Macquarie Asia CEO and Head of Asia infrastructure, joins Daniel McCormack to review the growth of infrastructure investment across Asia. Discussion touches on common institutional investor questions and lessons learned by large infrastructure investors in Asia through recent decades.

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Pathways provides market leading analysis on real assets and private markets to help investors navigate these new and rapidly growing asset classes.”

Daniel McCormack
Managing Director, Head of Research

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