Private Infrastructure Asset Class Compendium (SECA (Swiss Private Equity and Corporate Finance Association))

Summary

• Capital Dynamics manages and advises more than USD 16 billion in private assets globally across private equity, private credit, and clean energy infrastructure.p.14
• Infrastructure deal volumes plummeted 58% year-on-year in Q2 2020 as a result of disruptions caused by the COVID-19 pandemic.p.36
• Schroders Capital manages over $66 billion in private market assets as of 31 March 2021 across real estate, infrastructure, private debt, and private equity.p.48
• McKinsey estimates that $3,3 Billionen Dollar per year (3,8% des globalen BIP) in global infrastructure investments will be required from 2016 to 2030.p.67

Key insights

1. Arcelor Mittal exhibits approximately 300x higher sensitivity to CO2 pricing than Alphabet/Google.p.10
2. Modern wind turbine installations generate approximately ten times more electricity today than systems built twenty years ago.p.10
3. Newly constructed renewable energy capacities achieved record highs worldwide in 2020 despite macro headwinds.p.18
4. Industry experts project that renewable sources will generate more than 80 % of Europe's electricity by 2050.p.20
5. Electric vehicles are projected to account for more than half of passenger vehicles by 2032, driving down battery storage costs.p.20
6. Global infrastructure transaction volume dropped 58% year-on-year in Q2 2020 according to Preqin.p.36
7. Partners Group's direct infrastructure strategy achieved a 13.0% net return since 2011 compared to 2.9% p.a. for its public benchmark.p.37
8. Ba rated infrastructure debt demonstrates a 10-year cumulative default probability of 8.9% compared to 17.5% for non-financial corporate issuers.p.53
9. Global airport passenger traffic plummeted by 75% in 2020 due to travel restrictions and pandemic disruptions.p.66