With ongoing uncertainty across the world, investors have been looking for attractive long-term investments that produce steady cash flows of a lesser risk profile. Infrastructure opportunities have gained increased popularity because of it. With technology taking such a central part of our lives and part of every business, our dependency continues to grow on reliable digital infrastructure such as high-speed internet, access to data centers and mobile technology. Every technology breakthrough, like Generative AI more recently, will continue to demand a more robust and resilient power grid that can adjust quickly to our needs. Ensuring data centers can keep up with the data storage and computing power is key. Developing data centers and improving the efficiency of existing ones in a way where clean energy can be utilized, present a unique investment opportunity.
As traditional energy source prices are at an all-time high, the cost of renewable energy and infrastructure become more attractive and offers the benefit of gaining more energy independence. Solar, wind generation and other sustainable energy generation have increased as many countries look to find alternative energy solutions. Many of the solar and wind facilities have been developed in rural areas, and to maximize their potential, there is a need for infrastructure to provide an effective way to move the power to the cities. Upgrading and modernizing electrical grid infrastructure is essential and is an area where capital can be used. Additionally, most modern nations are looking to be leaders in the decarbonizing global effort, which is estimated to be a potential investment of up to $4 trillion for the US economy alone.1
Further food and water infrastructure improvements are also becoming a growing necessity. Low-to-middle-income countries are eagerly looking for investment to help develop universal access to clean drinking water and to finance the infrastructure to help provide food security. The water crisis in particular is generating a lot of interest from investors, as trillions of dollars are needed to address the inadequate infrastructure, which cannot be supported by just the government.2 These investments can provide stable long-term returns that can significantly improve Corporate Social Responsibility (CSR), offset your carbon footprint and measurably benefit society.
Partnering with SS&C
In today’s market, working with a global service provider that has experience with diverse asset classes and fund structures is critical when venturing into a new infrastructure fund opportunity. SS&C assists its clients to ensure their funds are set up on our proprietary systems to maximize efficiencies, and that they are able obtain the financial reporting they are looking to achieve. Infrastructure funds may have certain complexities, such as different entities used to make investments, and consolidated or custom reporting. Our SS&C Private Markets professionals have the knowledge and capabilities to support your infrastructure fund administration needs.
In conjunction with our core fund administration solution, SS&C offers a secure investor portal, InvestorVision, with which investors across different funds can access and retrieve reports for the entities in which they invest. Fund managers and investors can log in to access fund-related reporting and investor-specific information in a secure and intuitive environment.
SS&C’s holistic approach includes not only accounting and financial reporting but also offers a data management solution. As ESG is an area of focus for many infrastructure fund managers, SS&C provides managers with a data service solution to produce reports that give clients the insights to better understand, monitor, and manage risks and exposures. The CoreSightline solution brings together different data points in a single location to help managers make better data-driven decisions with increased transparency and clarity.
Download our "Navigating the New Frontier in Infrastructure Investing" whitepaper to learn more.
References
- Mottershead, A. (November 2023). Power play: Electrification drives opportunities for listed infrastructure companies. Institutional Investing in Infrastructure.
- Mattson-Teig, Beth. (November 2023). Water works: Private capital is stepping in to address the substantial global need for investment in water infrastructure. Institutional Investing in Infrastructure.
