Why invest in 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.
Stable 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 Private Infrastructure investment can provide investors a long-term foundational allocation that seeks to offer diversification, income, and consistent returns. Infrastructure sectors include contracted power, regulated utilities, and GDP-linked assets, which generate mostly contracted and regulated cash flows.
Wind, solar, and natural gas generation assets supply power, typically under long-term fixed-price contracts, that underpin the expectation of stable, forecastable returns. Regulated utilities then distribute that essential service to customers in a safe, reliable, and affordable manner in exchange for an allowed return and after local or national regulatory approval.
Utilities also provide opportunity for further investment to improve aging infrastructure and help local communities decarbonize through the energy transition. A core infrastructure investment based on essential assets with monopolistic positions can provide a long-term, stable, diversifying allocation in a client's portfolio.
To learn more about Private Infrastructure, contact your JP Morgan representative.
