Market
Memos from Howard Marks: The Impact of DebtAssets that provide the essential services that underpin the global economy by moving people, goods, commodities and data. The infrastructure asset class spans five sectors – transport, renewable power, utilities, midstream and data – and the opportunity set continues to grow. Within these sectors are many different asset types, including rail and mass transit, toll roads, airports, wind farms, pipelines, electricity transmission and distribution networks, data centers and more.
Transport
Assets related to the movement of people and goods, including rail and mass transit, ports, containers, toll roads, bridges, tunnels and airports.
Renewable Power
Assets that derive energy from natural, replenishable sources. These assets include wind and solar farms, hydro dams, residential solar, and storage, such as large-scale batteries.
Utilities
Assets that provider water, gas and electricity. Utilities own and operate power plants, electricity transmission and distribution lines, gas and water transmission lines, as well as water treatment facilities and distribution networks (including pipes, pumps and storage facilities). The sector also includes residential infrastructure, including HVACs, heat pumps, smart meters, etc. Utilities are often the most regulated of infrastructure assets.
Midstream
Assets that facilitate the transportation, storage and processing of crude oil, natural gas and natural gas liquids. Assets include gathering and processing systems, pipelines, storage and export facilities.
Data
Assets that make it possible to store, transmit and process ever-growing amounts of data. A newer part of the infrastructure universe, data infrastructure is part of the backbone of the digital economy. These assets include data centers, fiber networks, cell towers and distributed antenna systems.