In our latest interview for our Perspectives on Infrastructure series we've spoken with Philip Kent, lead adviser at Gravis to GCP Infrastructure Investments Limited, about the appeal of infrastructure as an asset class. Whilst he observes the different impact the pandemic has had between assets that rely on cashflows based on the availability of assets – such as schools and hospitals – versus those that are reliant on usage, such as ports, airports and leisure centres, it's clear that there remains significant appetite for investors to deploy capital in this market.
In line with others we have spoken to as part of this series, Philip agrees that investors are looking for policy clarity from the government, both around the size of the role there is for private investors to play in funding the growth and development of new infrastructure assets, and the form of support mechanisms which will attract that investment.
"Coming out of the pandemic, the government balance sheet and its willingness to issue more debt to fund large capital requirements may have changed. That potentially supports a greater role for private sector investors, and there is a ready pool of those willing to invest if the policy and support mechanisms are there.”