Fundraising for private infrastructure funds is booming. In 2018, $80billion were raised in closed-ended Infrastructure funds and funds raised are increasingly ending-up in fewer hands.
The “illiquidity premium” has been a much-debated topic in economic theory for some time now, the premise being that if an asset cannot be readily sold without meaningfully impacting its value, then it should reward the holder with an enhanced return.
Since 2008, Flexstone Partners investment team has been an active co-investor committing over €700 million to 87 co-investments in Growth and Small to Middle-Market Buyout deals.
Infrastructure is unlike other asset classes. It has a direct impact on people’s lives, facilitating the functioning of critical activities without which everyday life would grind to a halt.