In this paper, we examine the drivers of the volatility of unlisted infrastructure equity investments. Our analysis uses the EDHECinfra database of unlisted infrastructure equity investment data, which covers hundreds of firms over 20 years and a new approach to measure the market value of these investments over time.
The Fair Value of Investments in Unlisted Infrastructure equity: The robustness of better data & advanced methods
As more investors consider allocations to unlisted infrastructure, the need to bring the asset class into the mainstream of risk management, asset allocation and prudential regulation is increasing rapidly. Recent advances in data collection and asset pricing techniques now enable the evolution of fair market prices to be estimated.
Anatomy of a Cash Cow: An In-Depth Look at the Financial Characteristics of Infrastructure Companies
We examine how infrastructure companies differ from the rest of the economy and in particular whether or not they tend to pay larger and more frequent dividends. We find that infrastructure companies exhibit key systematic differences with a sample of ‘matched’ firms that are otherwise comparable.
The cost of capital of motorway concessions in France: A modern approach to toll regulation
The high level of tolls on privatised highways is a sensitive matter in French politics. This research paper on the adequate level of tolls on French roads is prominently featured in a report released by the Senate Investigative Committee on the control and regulation of highway concession contracts and highlights the failure to set tolls using fair benchmarks.
Le coût du capital dans les concessions autoroutières en France: Pour une approche moderne de la réglementation des péages
Cette publication, dont les conclusions sont reprises dans leur intégralité par le rapport de Commission d’enquête du Sénat sur « le contrôle, la régulation et l’évolution des concessions autoroutières » publié le 18 Septembre 2020, met en lumière l’archaïsme de la réglementation des péages dans les concessions d’autoroutes en France.
The Pricing of Private Infrastructure Debt: A Dynamic Approach and Comparison with Corporate Debt
This paper examines the drivers and evolution of credit spreads in private infrastructure debt. We ask two main questions: Which factors explain private infrastructure credit spreads (and discount rates) and how do they evolve over time? Are infrastructure project finance spreads and infrastructure corporate spreads driven by common factors?