Infrastructure consists of all physical and organizational facilities that are crucial for the operation and development of a modern economy. This includes all economic infrastructure like transportation, communication and energy infrastructure as well as social infrastructure like education, health and judicial infrastructure. One can describe private investments along two dimensions. First they can either invest direct in specific assets or indirect via a share from an infrastructure fund. Second infrastructure investments can be done either via equity or external funds.

A big advantage of this asset class is its stable and predictable returns. Moreover, the returns have quite often some sort of inflation protection and they help to diversify the portfolio. These attributes make infrastructure investment so attractive for institutional clients. The target return lays, depending on the project, between 6% and 15%. Note that due to the nature of the projects and the long-term horizon, this asset class is very illiquid.