Infrastructure valuation: New tools for the toolkit Artwork

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Infrastructure valuation: New tools for the toolkit

July 11, 2023 • Season 3 • Episode 9

Valuations for private infrastructure investment have long been murky and at times challenging to compare to other asset types.

Using a large dataset of more than 1,000 transactions, MAM research has derived a time series of private infrastructure valuations to gain insights.

Global infrastructure strategist, Aizhan Meldebek, summarizes the work including a finding that infrastructure valuation multiples have a negative relationship with interest rates and a positive relationship with inflation.

"We have created an infrastructure 'cap rate' that enables investors to directly compare infrastructure valuations with those of real estate," says Meldebek.

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