Tuesday 27 October 2020 - for immediate release
Bright outlook for infrastructure investors says Operis
Operis, a leading advisor in project and infrastructure finance, explains why infrastructure has reinforced its appeal to investors in a report published today in partnership with award-winning consultancy BTY.
Operis director and head of advisory Erwan Fournis is one of the contributing authors to the report which is titled "More resilient, more sustainable, and more predictable: the future of infrastructure".
He said: "There are three main takeaways. The first is the reinforced appeal of infrastructure as an asset class. There is obvious evidence of the significant impact of the current economic crisis across multiple sectors. Some infrastructure assets, however, have only experienced a limited impact (eg. some regulated utilities or availability-based infrastructure) or temporary impact (eg. essential water crossings with no alternatives), vindicating careful investment selection by fund managers. This will hopefully have a positive impact on the fund management industry by providing evidence for the resilience of disciplined investment strategies throughout economic cycles.
"Secondly, we can expect a change in focus from transportation to digital within infrastructure investment strategies and allocations. Transportation will represent a higher risk for investors in the short to medium term. The intrinsically higher correlation to GDP of most transportation assets will translate into some uncertainty over the amount of travelling which new methods of work and collaboration will only amplify. Conversely, there will need to be more digital infrastructure to facilitate new ways of working.
"Finally, recent events have strengthened the case for private delivery of new infrastructure. The public budgets are even deeper in deficit after expenditure spent propping up the economy during the initial phase of the lockdown and further rounds of restrictions are likely to do further damage. Maximising the use of the increasing liquidity available to the infrastructure sector, in the current ultra-low or zero interest rate environment, should make private investment in infrastructure a highly compelling proposition."
NOTE TO EDITORS
Media contact
Stephen Fleming, Communications Advisor, Operis
Email:stephen@flemingpr.com
Phone:+44 (0) 7718 756 615
About Operis
Operis is a leading advisor in project and infrastructure finance, globally renowned for its financial modelling and auditing expertise, and well known in Europe for its financial structuring advice. The firm has been mandated by leading investment banks, infrastructure funds, bond arrangers and guarantor bodies around the world. This experience spans all infrastructure and energy sectors and covers over 1,150 projects and other funded transactions worldwide.
The firm has its origins as a specialist in the financial modelling of project finance transactions. That expertise remains a distinctive strength and over time, Operis's activities have widened to cover a full portfolio of project finance related services including financial advice, model audit, financial modelling training and financial modelling software.
Operis works by forging long term close and collaborative partnerships with clients so it can bring the maximum rigour and clarity to their projects, whilst ensuring they are always able to meet their timetables. This enables it to provide reassurance to funders and project managers, thus achieving effective and productive results for all parties. Its approach is to provide expert and personal attention that only an independent firm can deliver.
Websitehere
Reporthere
About BTY
BTY is an award-winning professional consultancy providing complete project solutions in real estate and infrastructure asset planning, development, operations and transactions. Established in 1978, the privately owned firm's operations are based in North America, Europe and the Middle East, with a multi-sector global portfolio of projects valued at over $100 billion. BTY's core services include Infrastructure Advisory, Project Management, Project Monitoring and Cost Management, supported by proprietary data and digital technology solutions.
Websitehere