Our dedicated and experienced infrastructure team
Why private infrastructure?
Pursue potential benefits once available primarily to institutional investors.
Cash yield
Essential services with regulated and contracted revenues may deliver steady income through a market cycle.
Consistent returns
Essential service providers often have little or no competition and less expected sensitivity to economic and market risks.
Diversification
Infrastructure has historically performed differently than stocks, bonds and other alternative assets.2
A growing need for private infrastructure investing
Build new assets
to accommodate the world’s growing population and the energy transition.
Upgrade existing assets
to modernize aging systems, improve safety and transition to sustainable energy.
How we invest in private infrastructure
Seeking regular cash flow and long-term returns across multiple sectors
Provided for information only based on market conditions as of date of publication, not to be construed as investment recommendation or advice. Diversification does not guarantee investment returns and does not eliminate the risk of loss. The information is generic in nature, not taking into account any specific investor’s objectives or circumstances. Investors should seek financial advice and make independent evaluation before investing.
1 Source: J.P. Morgan Asset Management; as of June 30, 2023.
2 Other alternatives include: Real Estate, Direct Lending, Venture Capital and Private Equity. Source: MSCI, Bloomberg, Burgiss, NCREIF, Cliffwater, HFRI, J.P. Morgan Asset Management. Private Equity and Venture Capital are time weighted returns from Burgiss. Global equities: MSCI AC World Index. Global Bonds: Bloomberg Global Aggregate Index. U.S. Core Real Estate: NCREIF Property Index – Open End Diversified Core Equity component. Europe Core Real Estate: MSCI Global Property Fund Index – Continental Europe. Asia Pacific (APAC) Core Real Estate: MSCI Global Property Fund Index – Asia-Pacific. Global infrastructure (Infra.): MSCI Global Quarterly Infrastructure Asset Index. U.S. Direct Lending: Cliffwater Direct Lending Index. All correlation coefficients are calculated based on quarterly total return data for the period 6/30/2008 – 12/31/2022, except correlations with Bitcoin which are calculated over the period 12/31/2010 – 12/31/2022. Returns are denominated in USD.
3 Source: McKinsey Global Institute, J.P. Morgan Asset Management. Data is based on availability as of May 31, 2023, using constant 2017 U.S. dollars.
Infrastructure
Investing in infrastructure assets or debt associated with infrastructure involve a variety of risks, not all of which can be foreseen or quantified, and which include, among others: the burdens of ownership of infrastructure; local, national and international economic conditions; the supply and demand for services from and access to infrastructure; the financial condition of users and suppliers of infrastructure assets; risks related to construction, regulatory requirements, labor actions, health and safety matters, government contracts, operating and technical needs, capital expenditures, demand and user conflicts, bypass attempts, strategic assets, changes in interest rates and the availability of funds/ assets which may render the purchase, sale or refinancing of infrastructure assets difficult or impracticable; changes in environmental laws and regulations, investments in other funds, troubled infrastructure assets and planning laws and other governmental rules; changes in energy prices; negative developments in the economy that may depress travel activity; force majeure acts, terrorist events, under-insured or uninsurable losses; and other factors which are beyond the reasonable control of the fund/ asset or the financial professional. Many of these factors could cause fluctuations in usage, expenses and revenues, causing the value of the Investments to decline and negatively affecting the funds/ assets returns.