• ICON
    STAY SAFE. AVOID FRAUD AND SCAMS. 注意安全。提防詐騙。
    Did you receive a text, call or email that seems suspicious? Don’t respond to it. 切勿回覆任何可疑的簡訊、電話或電子郵件。
    ICON
    Learn More
    X

Unlocking Infrastructure

WHAT IS PRIVATE INFRASTRUCTURE?

Infrastructure: The Building Blocks of Society

Infrastructure consists of the physical assets required for economies and societies to function, such as toll roads, bridges and railroads. Infrastructure investors provide the capital necessary to repair and build new infrastructure. 

Watch Video: Introduction to Private Infrastructure

Infrastructure Investment Characteristics

1. Essential services supported by hard assets

2. Visibility of long-term cash flows

3. Contracted, regulated assets

4. Well-established market positions

5. Potential for inflation protection and stability through economic cycles

 

Infrastructure Sectors

The Role of Private Infrastructure


Governments increasingly need private capital to repair and build new infrastructure.

The public funding gap
Source: G20 Global Infrastructure Outlook. As of March 2018. Note: “Infrastructure investment” is defined here as gross fixed capital formation by the public and private sectors on fixed, immovable assets that support long-term economic growth, and also includes maintenance and replacement costs. The estimate of investment need is based on an analysis of how much countries would have to spend if they wanted to match the performance of their best-performing peers by income group, controlling for economic and demographic differences and the quality of current infrastructures.
The public funding gap
Source: G20 Global Infrastructure Outlook. As of March 2018. Note: “Infrastructure investment” is defined here as gross fixed capital formation by the public and private sectors on fixed, immovable assets that support long-term economic growth, and also includes maintenance and replacement costs. The estimate of investment need is based on an analysis of how much countries would have to spend if they wanted to match the performance of their best-performing peers by income group, controlling for economic and demographic differences and the quality of current infrastructures.

 

 

$15T
Infrastructure investment gap between what the world needs and what governments can be expected to spend based on current trends between now and 2040

Global Private Infrastructure Demand Drivers

There are four key forces supporting the growing demand for private-sector infrastructure investment.

How Infrastructure Assets Generate Revenue

Cash flow from infrastructure depends on multiple factors.

Cash flow from infrastructure depends on multiple factors.
For illustrative purposes only.
Cash flow from infrastructure depends on multiple factors.
For illustrative purposes only.

ATTRIBUTES OF PRIVATE INFRASTRUCTURE INVESTMENTS

Private Infrastructure Investments Typically Seek to Deliver... 

The essential nature of infrastructure’s asset base, with contracted yield, has historically provided downside protection.
 

Performance in 2022

Performance in 2022
Note: Global Private Infrastructure refers to the Cambridge Associates All Global Private Infrastructure Index. Non-Inflation Government Bonds refers to the Bloomberg U.S. Treasury Total Return Unhedged Index in the US, the FTSE Eurozone Government Bond Index in the Eurozone, and the FTSE Japan Government Bond Index in Japan. Source: Cambridge, Bloomberg, KKR GMAA (KKR Global Macro & Asset Allocation team) analysis. No representation is made that the trends depicted or described above will continue.
Performance in 2022
Note: Global Private Infrastructure refers to the Cambridge Associates All Global Private Infrastructure Index. Non-Inflation Government Bonds refers to the Bloomberg U.S. Treasury Total Return Unhedged Index in the US, the FTSE Eurozone Government Bond Index in the Eurozone, and the FTSE Japan Government Bond Index in Japan. Source: Cambridge, Bloomberg, KKR GMAA (KKR Global Macro & Asset Allocation team) analysis. No representation is made that the trends depicted or described above will continue.

CONSIDERATIONS FOR PRIVATE INFRASTRUCTURE INVESTING

Private Infrastructure Investing: Risk vs. Reward

Explore Continuing Education On-Demand

Watch Video: Introduction to Private Infrastructure


An on demand webcast offering one hour of continuing education (CE) credits.

REGISTER NOW Access Video Library
Explore Other Private Market Asset Classes
Dig deeper into three other private market asset classes to learn what they are, why they matter, and how they may fit within existing portfolios.
  • Private Equity
    Private equity involves investment in private companies with growth potential or private businesses that need financial restructuring with the intention of enhancing the value of the invested companies over time.
    Explore Private Equity
  • Private Real Estate
    Private real estate refers to investment in real estate properties that are privately owned and managed by individuals, partnerships, or private companies, rather than being publicly traded in the stock market.
    Explore Private Real Estate
  • Private Credit
    Private credit consists of investment in privately negotiated loans issued from non-bank lenders to middle market companies that are typically not publicly traded.
    Explore Private Credit

Advisors, we'd love to connect with you!

Our team is available to support you—whether you’re looking for more information, exploring a relationship with KKR, or hoping to meet at an industry event. Fill out the form and a member of our team will follow up and direct you to your dedicated relationship manager.

Individual investors: Please reach out to your financial advisor for more information.

Enter First Name
Enter Last Name
Enter Company Name
Enter Business Email Please enter a valid email address. Please enter a professional email address.
Enter Company Name
0/400

Please do not include any personal or sensitive information.

By submitting this information, you understand that your information will be shared with KKR to be used as detailed in our privacy policy, including to contact you with information about our products and services.