Dry Powder: The Private Equity Podcast Infrastructure’s New Playbook
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Mar 18, 2025 Andrew Kunkel, a member of Bain & Company's private equity practice and an expert in infrastructure investing, discusses the transformative landscape of infrastructure deals. He emphasizes the growing role of private capital, especially in energy transitions and digital infrastructure. Kunkel explores the complexities of evolving investment strategies, the competitive dynamics within private equity, and uncovers the hidden value in assets like toll roads. He also shares insights on effective team dynamics and the importance of aligning investment strategies with operational efficiency.
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Evolution of Infrastructure Investing
- Infrastructure investing has shifted from core to value-add and core-plus models.
- This allows for more flexibility in defining infrastructure and exploring new asset classes.
Infrastructure Investment Strategies
- Core infrastructure involves low-risk assets like toll roads with single-digit returns.
- Core-plus and value-add strategies take on more operating risk for higher returns.
New Infrastructure Investments
- Infrastructure funds are increasingly investing in areas like energy transition and digital infrastructure.
- This includes greenfield opportunities in renewable energy and data centers to support the AI boom.