___________________________________________________________________________ 2011/FMP/CON/012 Session 5 Unlocking Long-Term Investment Capital for Infrastructure Assets Submitted by: Stanford University, Oxford University Conference on the Framework and Options for Public and Private Financing of Infrastructure Washington, D.C., United States 22-23 June 2011
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Unlocking Long-Term Investment Capital for Infrastructure ...mddb.apec.org/Documents/2011/FMP/CONF/11_fmp_con_012.pdf• But bigggg g ger governance challenges. Direct investing requires
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Source: Collaboratory for Research on Global Projects, Stanford University
Final Thoughts
• Conundrum: Investors want exposure to the asset but aren’t investing due toConundrum: Investors want exposure to the asset but aren t investing due to access constraints. • 3rd party model has its challenges.• Direct investing is extremely difficult and resource intensive.
• As such, attracting capital into infrastructure will require innovative access points, vehicles and structures.
• The challenge for policymakers is to innovate, simplify and facilitate access.
• Some additional ideas:• 3rd party fund managers could extend time horizons and / or change fees. • Direct investors could work with managers on ‘club investments’. • Direct investors could work with other direct investors to pool resources.
• In sum, we need new mechanisms to better facilitate intermediation between the investor and the asset; to do this will require the commitment of all stakeholdersstakeholders.