The Rise of a Global Infrastructure Market through Relational Investing

Infrastructure assets around the world are shifting from public to private ownership. This article investigates how institutional investors are investing beyond their traditional financial and geographic borders and are increasingly serving as owners of infrastructure assets. It shows how infrastruc...

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Bibliographic Details
Published in:Economic geography 2009-01, Vol.85 (1), p.75-97
Main Author: Torrance, Morag
Format: Article
Language:English
Subjects:
Asset management
Bgi / Prodig
Capital management
Decision making
Diversification
Economic geography
Economics, International
Equity
Financial investments
Foreign investments
GDP
geographies of information
Geography
Geography of markets and trade services
Globalization
Gross Domestic Product
Human geography
Infrastructure
Infrastructure investments
Institutional investments
institutional investors
International
Investment
Investment banking
Investment policy
investment process
Investment returns
Investment strategies
Investors
Market analysis
Markets
Pension funds
Portfolio management
Private equity
Public infrastructure
relational investing
Services
Studies
Water mains
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Summary:Infrastructure assets around the world are shifting from public to private ownership. This article investigates how institutional investors are investing beyond their traditional financial and geographic borders and are increasingly serving as owners of infrastructure assets. It shows how infrastructure assets have specific geographies of information embedded in their investment returns and discusses the growing interest of institutional investors in investing in the infrastructure landscape. While infrastructure investments are considered globally, opportunities depend on the availability of specialist information in the region of investment. The article demonstrates that the low-risk, geographically varied returns match the diversification objectives of pension fund portfolios. Relational investing is important in implementing strategies for investing in the infrastructure, since the bidding on and ensuing ownership and management of infrastructure assets around the world require a combination of financial, legal, and technical expertise. The article addresses three distinct economic geography literatures: the geography of finance, pension fund research, and emerging debates on "relational geometries."
ISSN:0013-0095
1944-8287
DOI:10.1111/j.1944-8287.2008.01004.x