Infrastructure assets provide essential services that support economic growth, generate productivity and underpin the operation of society, in the case of telecommunications: terrestrial, submarine and satellite cables carry internet traffic around the world that makes our everyday life smarter and easier.
As an asset class, infrastructure is not an old topic. In fact, infrastructure financing has some very attractive characteristics, which has helped it emerge as an important alternative investment asset class. Most institutional and family trust funds across the world have some amount of money invested in infrastructure assets for its unique benefits:
■ High Barriers to Entry
■ Inelastic Demand
■ Economies of Scale
■ Tax Benefits
■ Long Gestation Period
■ Low Sensitivity To Economic Swings