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By Christophe VANDENDORPE, Partner, Strategy and Transactions Leader Zeeshan AHMED, Partner, Infrastructure Leader, EY Luxembourg
In recent years, infrastructure has emerged as a resilient asset class, particularly during inflationary periods. The prevailing assumption is that inflation leads to higher interest rates, which can positively influence revenues while having a less detrimental effect on interest expenses, capital expenditures (capex), and maintenance costs. However, this article contends that the resilience of infrastructure investments is not an inherent quality; rather, it necessitates active management and value creation, akin to other alternative investment asset classes. Therefore, it is...
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