An infrastructure fund is a privately offered or publicly listed fund that invests directly or indirectly in

infrastructure Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and pri ...

and associated industries. Examples of direct investments include the purchase of stocks and bonds through public markets, or

project finance Project finance is the long-term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of its sponsors. Usually, a project financing structure involves a number of eq ...

. Examples of indirect investment includes investment in private infrastructure funds or preexisting, publicly listed infrastructure funds and indexes. Definitions of "infrastructure" vary, but often include power plants, water and waste management systems, transportation systems, communications systems, and oil and gas pipelines. Definitions may also include healthcare and educational facilities. A 2021 study found that, in part due to the compensation structures and the duration of typical investments, infrastructure funds tend deliver returns worse than investors may assume, and were subject to fluctuations due to economic cycles. In February 2023,

Bloomberg Bloomberg may refer to: People * Daniel J. Bloomberg (1905–1984), audio engineer * Georgina Bloomberg (born 1983), professional equestrian * Michael Bloomberg (born 1942), American businessman and founder of Bloomberg L.P.; politician a ...

reported that

Preqin Preqin Ltd. is a Privately held company, privately held London-based investment data company that provides Financial data vendor, financial data and insight on the alternative assets market, as well as tools to support investment in alternatives. ...

predicted some $1.87 trillion would be dedicated to infrastructure investments by 2026.

References

Infrastructure investment Private equity Investment Management theory {{private-equity-stub