We examine ESG risks and their implications for the investment community, the investment impact of climate risk on global infrastructure, and present our latest research insights into infrastructure investment portfolio construction and risk management.
NAV 2.0: A better asset pricing model for private infra
CAPM may be ‘one of the founding frameworks of modern finance’, but for determining the net asset value of unlisted infrastructure it is terribly inadequate. Frédéric Blanc-Brude, the director of the EDHEC Infrastructure Institute explains why and offers an alternative. Originally published in Infrastructure Investor. When reporting the NAV of unlisted assets like infrastructure using discounted cashflows, best practice consists … Read More
The Valuation of Private Companies: Asset Valuation and the Dynamics of Private Markets
This paper proposes a factor model based solution that, when calibrated with transaction data and novel risk factors, can transform sparse, noisy, and biased transaction data into meaningful information that aids asset allocation, benchmarking, and monitoring of private investments.
Low Tide: What the Data Showed About Thames Water
In this paper, we ask what investors in Thames Water – and its holding company Kemble Water – would have learned about the level of risk of their investment and its likely market value had they compared its characteristics to market and peer group data.
Computing Extreme Climate Value for Infrastructure Investments: Asset Pricing Applied to NGFS Phase 4 and Oxford Economics Scenarios
This paper describes the novel method that we have developed to measure climate risks. While we here apply this method to infrastructure assets, it paves the way to using similar approaches to enlarge the scope of its application.
The Pricing of Green Infrastructure: The realised and expected financial performance of green power infrastructure investment, 2010-2021
In this paper, we examine the impact on realised performance of the permanent shift in investor preferences for low carbon energy investments, and how it relates to the expected returns of green power investments.